Sunstone Hotel Investors (SHO) said Thursday that it has entered into an amended and restated credit agreement totaling $1.35 billion to address near-term maturities, extend remaining loans into 2030 and 2031 with options, and keep borrowings prepayable at any time.

The recast comprises a $500 million revolver due September 2029, which can be extended to September 2030, a $275 million delayed-draw term loan due January 2029, extendable to January 2031, a $275 million term loan due January 2030, and a $300 million term loan due January 2031, the company said.

Interest ranges from 1.35% to 2.25% over term SOFR on a leverage grid, Sunstone said.

Proceeds from incremental term loans consolidated four prior term loans into three and fully repaid the revolver balance, and up to $90 million of the delayed-draw will be held until January to repay the series A senior notes at maturity, the company said.

The recast extends average maturity by over three years and lowers overall borrowing costs while enhancing financial flexibility, Sunstone added.