Sunstone Hotel Investors Terminates Credit Facility

Sunstone Hotel Investors Inc., San Clemente, Calif., has terminated its $85 million senior secured credit facility. The company said the decision was made in view of its strong liquidity position and the restrictive terms of that facility. It had been secured by mortgages on five of the Sunstone's hotels, had no outstanding borrowings and backed $2.9 million in outstanding irrevocable letters of credit. The termination of the credit facility will eliminate approximately $600,000 in fees and associated costs, and removes restrictive covenants and encumbrances. The company's business plan does not contemplate the use of revolving credit during 2010. Sunstone added it expects to enter into a new, appropriately sized and structured credit facility in the future when its business plan contemplates the use of revolving credit.