Sunstone Hotel Investors, Inc. (NYSE:SHO-F) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry Into a Material Definitive Agreement.
On November 10, 2017, Sunstone Hotel Investors, Inc. (the “Company”) entered into an agreement to refinance the Company’s existing $220 million mortgage loan secured by the Hilton San Diego Bayfront with a new $220 million mortgage loan (the “Loan”). The Loan has a three-year initial term and three one-year extension options, subject to the satisfaction of certain conditions. The Loan is interest only and provides for a floating interest rate of LIBOR plus 1.05% with a 25 basis point increase during the final one-year extension period, if extended. The Loan replaces the existing loan that was scheduled to mature in August 2019 and had a floating interest rate of LIBOR plus 2.25%.
Item 7.01.Regulation FD Disclosure.
On November 13, 2017, the Company issued a press release announcing the entry into the Loan described above. A copy of that press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished to this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
This Current Report on Form 8-K contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, to the safe harbor provisions of the Private Securities Reform Act of 1995. These forward-looking statements relate to the Loan’s expected effect on the Company’s annual cash interest expense. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information.
These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as described in greater detail in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Item 9.01.Financial Statements and Exhibits.
(d)The following exhibit is furnished herewith:
EXHIBIT INDEX
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ExhibitNo. |
Description |
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99.1 |
Press Release, dated November 13, 2017. |