Sunrise Senior Living amends loan, reducing size, waiving covenant compliance

By Sara Rosenberg

New York, July 29 - Sunrise Senior Living Inc. amended its credit facility, reducing the size to $160 million and waiving compliance with financial covenants, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Compliance with financial covenants was waived for the year ended Dec. 31, 2007 and for the fiscal quarters ended March 31 and June 30.

In addition, compliance with the leverage ratio and fixed-charge coverage ratio covenants was waived for the fiscal quarter ending Sept. 30.

Also, under the amendment, until the company has delivered evidence that it has timely filed its 10-K for the fiscal year ending Dec. 31 and that it is in compliance with all financial covenants for the fiscal year ending Dec. 31, pricing, which was increased on Feb. 1, will remain at Libor plus 275 basis points, liquidity of at least $50 million must be maintained, and stock repurchases or payments of a cash dividend are prohibited.

Furthermore, any unrestricted cash and cash equivalents in excess of $50 million must be used to pay down the outstanding borrowings under the credit facility.

The amendment was completed on July 23.

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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