Business Context and Reporting Period
Company: Sunstone Hotel Investors, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 25, 2008
Event: Entry into a Material Definitive Agreement (Third Letter Amendment to Revolving Credit Agreement).
Key Financial Metrics
This filing does not report specific financial performance metrics such as revenue, profit, cash flow, margins, or total debt levels. The document focuses exclusively on the amendment of a credit facility agreement.
Material Changes
On November 25, 2008, Sunstone Hotel Partnership, LLC (a wholly owned subsidiary) entered into a Third Letter Amendment to its Revolving Credit Agreement, originally dated July 17, 2006. The amendment clarifies the calculation of "Adjusted EBITDA" for the purpose of the "Fixed Charge Coverage Ratio."
- Clarification: The definition now explicitly includes the Company's pro-rata share of joint ventures' income, interest expense, income tax expense, depreciation, amortization, gains/losses from asset sales, impairment charges, and income attributable to minority interests.
- Parties Involved: Citicorp North America, Inc. (Administrative Agent), Wachovia Capital Markets, LLC, Calyon New York Branch, and Keybank National Association.
Guidance, Outlook, and Risks
The filing contains no management guidance, forward-looking outlook, or discussion of general business risks. The primary contingency noted is the requirement to file the Third Amendment as an exhibit to the Company's Form 10-K for the fiscal year ending December 31, 2008.
Investor Verification Checklist
- Verify the full text of the Third Amendment in the upcoming Form 10-K filing for fiscal year 2008.
- Review the impact of the Adjusted EBITDA definition change on the Company's Fixed Charge Coverage Ratio compliance.
- Confirm the current status of the Revolving Credit Agreement and any outstanding balances with the administrative agent.