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Sunstone Hotel boosts unsecured credit facility to $500M

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Sunstone Hotel boosts unsecured credit facility to $500M

Sunstone Hotel Investors Inc. amended an unsecured credit facility to boost the total available capacity to $500 million from $400 million.

The amended facility comes with an accordion option that allows the lodging real estate investment trust to request additional lender commitments for up to a total capacity of $800 million.

Pricing on the amended facility is determined pursuant to a leverage-based pricing grid, which ranges from 140 to 225 basis points over the London interbank offered rate and reflects a reduction of about 5 to 15 basis points over the previous agreement.

The facility has an initial term expiring in April 2023, with an option to extend for up to one additional year.

Sunstone said it also completed the repricing of two unsecured term loans totaling $185 million, leading to a 45-basis-point reduction in the annual interest expense for the loans.

Wells Fargo Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., JPMorgan Chase Bank NA, PNC Capital Markets LLC and U.S. Bank NA are the joint leaders of the facility.

Wells Fargo Bank NA is the administrative agent; Bank of America NA and JPMorgan Chase Bank are the syndication agents; and Citibank NA, PNC Bank NA and U.S. Bank are the documentation agents.