Sunstone HotelInvestors Inc. priced an underwritten public offering of its preferredstock for gross proceeds of $75 million.
The offering of 3.0 million shares of Sunstone's 6.45% seriesF cumulative redeemable preferred stock is expected to close May 17, subject tocustomary closing conditions.
The company intends to contribute the net proceeds from the offeringto its operating partnership, Sunstone Hotel Partnership LLC, in exchange for preferredmembership units in the unit. Sunstone Hotel Partnership plans to use the fundsto fully repay the outstanding mortgage loan secured by the Renaissance Orlando at SeaWorld. Any excess netproceeds will be used for general corporate purposes.
Wells Fargo Securities LLC is acting as the sole book-runningmanager.