Published on : Saturday, March 5, 2016
Sunstone Hotel Investors, Inc. announced today that it intends to redeem all of its issued and outstanding 8.0% Series D Cumulative Redeemable Preferred Stock . All of the 4,600,000 issued and outstanding Series D Shares will be redeemed. Series D Shares held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.
The redemption of the Series D Shares will be effected on April 6, 2016 at a price equal to $25.00 per share, plus an amount equal to all accrued and unpaid dividends thereon from April 1, 2016 to but not including the Redemption Date in an amount equal to $0.027778 per share, for a total payment of $25.027778 per share . Holders of record of the Preferred Stock as of March 31, 2016 will receive the previously declared dividend of $0.50 per share with respect to the period from January 1, 2016 to and including March 31, 2016, payable on April 15, 2016. The redemption price for the Series D Shares will be payable in cash, without interest on the Redemption Date. After the Redemption Date, Series D Shares shall no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price plus any accrued and unpaid dividends, without interest. Furthermore, because the redemption of the Series D Shares is a redemption in full, trading of the Series D Shares on the New York Stock Exchange (“NYSE”) will cease after the redemption date. The Series D Shares trade on the NYSE under the symbol “SHOPRD”.
The notice of redemption and related materials for each of the Series D Shares are being mailed to holders of record as of March 4, 2016. As specified in each notice of redemption, payment of the applicable Redemption Price will be made only upon presentation and surrender of the certificates representing the Series D Shares to the redemption agent, American Stock Transfer & Trust Company, LLC.
A portion of the aggregate amount to be paid to effect the redemption in full of the Series D Shares is expected to be funded by net proceeds from the Company’s previously announced offering of 6.95% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share, which offering is expected to close on March 11, 2016, subject to customary closing conditions.