Sunstone Hotel Investors, Inc. (NYSE: SHO) announced on September 25 2025 that it had entered into a Third Amended and Restated Credit Agreement with an aggregate borrowing capacity of $1.35 billion. The new facility is designed to address all near‑term maturities, extend the duration of remaining in‑place loans, and further strengthen the company’s balance sheet.
The agreement is composed of four loan components: a $500 million revolving credit facility maturing September 2029, a $275 million delayed‑draw term loan maturing January 2029, a $275 million term loan maturing January 2030, and a $300 million term loan maturing January 2031. Extension options allow the revolving facility to be extended to September 2030 and each $275 million term loan to be extended to January 2031.
Interest on the new loans is set on a leverage‑based pricing grid ranging from 1.35 % to 2.25 % over the applicable term SOFR, and the company has entered into interest‑rate swaps that lower its borrowing cost, resulting in over 75 % of its debt and preferred equity now subject to fixed rates.
The proceeds from the new term loans were used to consolidate the company’s prior four term loans into three and to fully repay the existing revolving credit facility. A $90 million draw under the delayed‑draw facility will be postponed until January 2026, and the majority of the proceeds will repay the Series A Senior Notes at their scheduled maturity, leaving the company with no debt maturities until 2028. This refinancing extends the average maturity by more than three years, reduces overall borrowing costs, and provides Sunstone with greater financial flexibility to execute its growth strategy.
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