Sonida Senior Living enters into $80 million four-year term loan

By Wendy Van Sickle

Columbus, Ohio, March 10 – Sonida Senior Living, Inc. entered into an $80 million term loan agreement to refinance certain existing mortgage debt, according to a news release.

The initial term is four years, with an optional one-year extension if certain financial performance metrics are met.

Interest equals one-month SOFR with a 0.25% SOFR floor plus a margin of 350 basis points, with the margin set to be lowered to 325 bps or 300 bps, depending on the company’s debt yield and debt service coverage ratio.

The initial term loan many be increased by up to $10 million in two $5 million increments if some financial performance metrics and conditions are met.

There is a $40 million uncommitted accordion feature that may be used to finance the acquisition of additional senior living communities.

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 10 communities by about 63 bps while also including future opportunities for additional performance-based interest rate reductions, according to the release.

Dallas-based Sonida is an operator of independent living, assisted living and memory care communities for senior adults.

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