Sonida Senior Living announced a $900 million permanent debt facility that will back its $1.8 billion merger with CNL Healthcare Properties. The commitment includes a $350 million accordion feature that can be expanded to a total of $1.25 billion, giving the combined company flexibility to meet future capital needs as the integration progresses.
The debt structure consists of a $375 million four‑year secured revolving credit facility and two term loans of $262.5 million each, with three‑year and five‑year maturities. Interest rates are tied to leverage ratios, providing a performance‑based cost of debt that rewards the combined entity for maintaining a strong balance sheet. The permanent nature of the facility replaces the bridge loan that had been in place, reducing short‑term refinancing risk and strengthening Sonida’s credit profile.
Strategically, the merger will create the eighth‑largest senior‑living operator in the United States, combining 153 communities and roughly 14,700 units. The scale increase is expected to generate $16 million to $20 million in annual synergies, primarily from eliminating duplicate advisory contracts and achieving operational efficiencies across the portfolio.
Management has described the transaction as transformational. CEO Brandon Ribar said the financing structure demonstrates confidence in the combined company’s ability to generate earnings accretion immediately and to pursue long‑term growth opportunities. The permanent debt also positions the company to maintain a robust capital structure as it moves toward the anticipated closing in the first half of 2026.
Prior to the financing announcement, Sonida’s stock had risen 25 % over the previous six months, reflecting investor optimism about the merger. The new debt facility is expected to reinforce that sentiment by providing a stable, long‑term funding source for the combined entity’s operations and future expansion plans.
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