secwatch.observer — SEC 8-K summary
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Issuer:     Sunstone Hotel Investors, Inc. (SHO)
CIK:        0001295810
Form:       8-K
Filed at:   2022-07-27T23:59:59+00:00
Accession:  0001558370-22-011101
Event type: debt
Sentiment:  positive
Materiality: 0.65
Item codes: 1.01, 2.03, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Sunstone Hotel Investors closes $850M credit agreement, extends maturities to 2027/2028
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- New $500M unsecured revolver plus $350M term loans (two $175M tranches), up from $108M prior.
- Proceeds used to fully repay the $230M outstanding on the prior revolver; facility now undrawn.
- Revolver matures July 2026 with two six-month extension options to July 2027; term loans mature July 2027 and Jan 2028.
- Interest rate ranges from 1.35% to 2.25% over adjusted SOFR based on leverage; sustainability-linked pricing can lower margin by 0.02%.
- Covenants include max leverage 6.5x, min fixed-charge coverage 1.5x, and unencumbered borrowing base of at least 7 properties / $500M.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1295810/000155837022011101/0001558370-22-011101-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1295810/000155837022011101/sho-20220725x8k.htm
  HTML page:      https://secwatch.observer/filing/0001558370-22-011101

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