Sonida Senior Living, Inc., a leading owner, operator and investor in senior living communities, announced that in connection with the previously announced definitive merger agreement with CNL Healthcare Properties, Inc, Sonida has obtained committed permanent debt financing of $900 million, with a $350 million accordion feature that allows Sonida to increase the facilities up to $1.25 billion.

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As previously communicated on November 5, 2025, Sonida will acquire 100% of the outstanding common stock of CHP for stock and cash consideration valued at approximately $1.8 billion. At the time of the Merger Agreement announcement, a 364-day committed bridge financing of $900 million was provided by RBC Capital Markets and BMO Capital Markets to, among other things, support funding of the cash portion of the purchase price and repay CHP’s existing corporate credit facilities. Sonida also obtained commitments for a $300 million secured revolving credit facility to cancel its existing revolving facility at transaction close, which will now be replaced by the Permanent Facilities.

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An overview of the newly obtained facilities is as follows:

  • Revolving Credit Facility: a new and upsized $375 million four-year secured revolving credit facility (“New Secured RCF”) with a pricing matrix between S+200 and S+135 bps depending on leverage. The New Secured RCF reflects a significant reduction in borrowing costs compared to the Company’s existing credit facility.
  • Term Loan Facility: two new term loans, a 3-year and a 5-year facility of $262.5 million each, with a pricing matrix of S+195 to S+130 bps depending on leverage.
  • Accordion Feature: up to $350 million of uncommitted debt capacity under the agreement governing these new facilities for a total capacity of up to $1.25 billion, giving the Company the ability to continue to support its ongoing acquisition strategy.
  • The facilities will be secured by a first priority pledge of equity interests in the borrowing base assets with a built-in mechanism for the equity pledge to be released and for the facilities to become unsecured based upon compliance with certain covenant requirements.

These newly obtained facilities will reduce the Bridge Loan Facility from $900 million to $300 million and be used to fund the transaction and provide meaningful available liquidity and dry powder to the Company for its continued opportunistic acquisition strategy. The remaining Bridge Loan Facility is expected to be replaced through property-level financing.

“We are pleased by the depth of interest in supporting Sonida in its next phase of growth and welcome the increased commitment from our existing lending partners and addition of high-quality new lending relationships. The Company’s new bank group deepens our access to capital markets and has the capacity to grow with us over time. Moreover, the improved borrowing structure and terms, which are more aligned with traditional REIT financing, reflect the strength of the pro-forma enterprise and the operational achievements made over the past several years,” said Brandon Ribar, Sonida’s President and Chief Executive Officer.

BMO Capital Markets Corp. and RBC Capital Markets serve as Joint Bookrunners for the new facilities and BMO is serving as the Administrative Agent. RBC Capital Markets, Citizens Bank, N.A., JPMorgan Chase Bank, N.A., KeyBanc National Association, and Wells Fargo Bank, National Association serve as Co-Syndication Agents. BMO Capital Markets Corp., RBC Capital Markets, Citizens Bank, N.A., JPMorgan Chase Bank, N.A., KeyBanc Capital Markets, and Wells Fargo Securities, LLC serve as Joint Lead Arrangers. First Financial Bank and Morgan Stanley are also participating in the new facilities.

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Source- businesswire