Sunrise Senior Living amends, waiving delivery of financials, revising pricing

By Sara Rosenberg

New York, Feb. 1 - Sunrise Senior Living Inc. amended its credit facility, waiving delivery of all 2006 quarterly financial statements and financial statements for the quarters ended March 31, 2007, June 30, 2007 and Sept. 30, according to an 8-K filed with the Securities and Exchange Commission Friday.

In addition, effective as of Feb. 1, until the end of the interest period in which 2006 and 2007 annual financial statements are received, the Libor rate loans margin will be 275 basis points.

The company now has until March 17 to deliver 2006 annual financial statements, until June 30 to deliver 2007 annual financial statements and until June 20 to deliver financial statements for the fiscal quarter ending March 31.

Furthermore, the company has to deliver an internally prepared draft balance sheet and income statement for the 2007 fiscal year by March 17 and an internally prepared draft balance sheet and income statement for the fiscal quarter ending March 31 by May 31.

The amendment also provides that, effective Feb. 20, the aggregate amount outstanding under the credit facility will not exceed $160 million until 2006 and 2007 annual financial statements are received, at which time the maximum amount permitted to be outstanding under the credit facility will return to $250 million.

As of Jan. 31, the company had an outstanding balance of $100 million in borrowing and $71.7 million of letters of credit outstanding under the facility.

Prior to Feb. 20, Sunrise Senior Living Insurance Inc., the company's wholly owned insurance captive, will replace certain letters of credit that are currently issued under the credit facility. Once these new arrangements are in place, the company will have $42.7 million of additional availability under the facility.

The amendment was completed on Jan. 31.

Bank of America is the administrative agent on the deal.

Sunrise Senior Living is a McLean, Va.-based provider of senior living services.

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