Sonida Completes $80M Refinancing, Extends Debt Maturities to 2024 and Positions Company for Growth

Sonida Senior Living (NYSE: SNDA) has entered into a loan agreement to refinance existing mortgage debt, servicing all of the company’s debt maturities through 2024 and positioning it for growth.

The transaction consists of an initial term loan of $80 million and up to $50 million of additional capital, with an uncommitted accordion provision of $40 million to fund the future growth of the company based in Dallas, according to a press release.

The loan is guaranteed by 10 Sonida communities. With the refinancing, Sonida executives reduced the company’s total debt by $38.5 million while also reducing the blended interest rate for the 10 communities by approximately 63 basis points. Refinancing also provides communities with opportunities for additional, performance-based interest rate reductions in the future.

Sonida can add up to $10 million to the initial term loan — two $5 million installments — and extend its maturity date for an additional year if the company meets certain financial performance metrics and others. conditions.

“This refinancing completes the company’s balance sheet transformation, addresses all short-term debt maturities and positions the company for its next phase of growth, which includes a focus on [return on invested] capital expenditures within our existing portfolio as well as acquisitions,” said Sonida President and CEO Kim Lody.

Sonida took on its new name of Capital Senior Living last November. The company’s growth strategy is centered on establishing more third-party managed communities as well as growing its owned portfolio, with a preference for the continuum of care properties that include independent living, assisted living and memory care.

Greystone Senior Housing Capital Markets worked with Sonida as exclusive advisor to arrange the financing.

Sonida is the latest listed senior housing company to refinance debt amid the pressures of the Covid-19 pandemic. Last December, Brookdale Senior Living (NYSE: BKD) completed a $100 million refinance and prepaid nearly all of its remaining maturities in 2022.

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