Sonida Senior Living Completes $80 Million Refinancing Addressing All Debt Maturities Through Mid-2024
Sonida Senior Living, Inc. (NYSE: SNDA), (the “Company” or “Sonida Senior Living”) one of the nation’s leading senior living owner-operators, announced that it has entered into a term loan agreement to refinance certain existing mortgage debt. The transaction includes an initial term loan of $80 million and up to $50 million of additional capital, including an uncommitted $40 million accordion, to fund future growth initiatives.
The term loan, which is secured by 10 of the Company’s senior living communities, addresses all debt maturities through mid-2024, reduces the company’s total debt by $38.5 million and reduces the blended interest rate for the ten communities by approximately 63 basis points while also including future opportunities for additional, performance-based interest rate reductions.
“This refinancing completes the Company’s balance sheet transformation, addresses all near-term debt maturities and positions the Company for its next phase of growth, which includes a focus on attractive ROIC capital expenditures within our existing portfolio as well as acquisitions,” said Kimberly S. Lody, President and CEO.
Transaction details include:
- Initial term loan of $80 million, which may be increased by up to $10 million in two $5 million increments if certain financial performance metrics and other customary conditions are met
- Maturity date of four years with optional one-year extension if certain financial performance metrics and other customary conditions are met
- An uncommitted $40 million accordion which may be accessed to finance the acquisition of additional senior living communities
- Interest rate of one-month SOFR plus 3.50%, subject to a SOFR floor of 0.25% and a lower SOFR spread of 3.25% or 3.00% depending on the Company’s debt yield and debt service coverage ratio
The Greystone Senior Housing Capital Markets team acted as exclusive advisor in arranging the financing on behalf of the Company.