Sunrise Enters Into Agreement to Sell 21-Community Portfolio for $204 Million
October 09 2009 - 7:00AM
PR Newswire (US)
Sunrise Expects to Retain Approximately $60 Million in Proceeds
MCLEAN, Va., Oct. 9 /PRNewswire-FirstCall/ -- Sunrise Senior
Living, Inc. (NYSE:SRZ) today announced that it has entered into an
agreement to sell 21 wholly owned assisted living communities,
located in 11 states, to BLC Acquisitions Inc., an affiliate of
Brookdale Senior Living Inc. (NYSE:BKD), for $204 million. BLC
Acquisitions has placed into escrow an earnest money deposit of $5
million toward the purchase price. The closing date is currently
scheduled for November 16, 2009. At the closing of the sale,
Sunrise is expected to receive approximately $60 million in
proceeds after payment or assumption by BLC Acquisitions of certain
mortgage loans, the posting of required escrows, and payment of
expenses by Sunrise, but prior to the use of any such funds to
repay a portion of the outstanding amounts under Sunrise's bank
credit facility. Closing of the transaction is conditioned, among
other things, on obtaining the requisite consent of the Company's
lenders under its bank credit facility by 5 p.m. on October 19,
2009. The Company expects to record an impairment charge of
approximately $7 million in the third quarter of 2009 to write down
five of the 21 communities to fair value. The Company expects to
record a gain on the sale of real estate of approximately $50
million upon closing of the transaction. "This is another important
step in our restructuring process and provides us with needed funds
to pay down our bank line and with additional working capital,"
said Mark Ordan, Sunrise's chief executive officer. "We are
particularly pleased that our residents and team members in these
communities will join a fine and committed operator like
Brookdale." Sunrise was advised on the sale by Goldman, Sachs and
Co. About Sunrise Senior Living Sunrise Senior Living, a McLean,
Va.-based company, employs approximately 40,000 people. As of June
30, 2009, Sunrise operated 415 communities in the United States,
Canada, Germany and the United Kingdom, with a combined unit
capacity of approximately 42,750 units. Sunrise offers a full range
of personalized senior living services, including independent
living, assisted living, care for individuals with Alzheimer's and
other forms of memory loss, as well as nursing and rehabilitative
services. Sunrise's senior living services are delivered by staff
trained to encourage the independence, preserve the dignity, enable
freedom of choice and protect the privacy of residents. To learn
more about Sunrise, please visit
http://www.sunriseseniorliving.com/. Forward-Looking Statements
Certain matters discussed in this press release may be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Although Sunrise believes
the expectations reflected in such forward-looking statements are
based on reasonable assumptions, there can be no assurances that
these expectations will be realized. Sunrise's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors, including, but not
limited to, the risk that the Company's sale of the 21-community
portfolio is not consummated, changes in the Company's anticipated
cash flow and liquidity; the Company's ability to maintain adequate
liquidity to operate its business and execute its restructuring;
the Company's ability to obtain waivers, cure or reach agreements
with respect to defaults under the Company's loan, joint venture
and construction agreements; the risk that a group of the Company's
creditors, acting together, could force the Company into an
involuntary bankruptcy proceeding; the Company's ability to sell
its Germany communities and settle the related debt within a
reasonable time period, and to negotiate a comprehensive
restructuring of the Company's obligations in respect of its
Fountains portfolio and certain other of its ventures; the
Company's ability to refinance its Bank Credit Facility and other
debt due in 2009 and/or raise funds from other sources; the
Company's ability to achieve anticipated savings from the Company's
cost reduction program; the outcome of the U.S. Securities and
Exchange Commission's investigation; the outcome of the IRS audit
of the Company's tax returns for the tax years ended December 31,
2005, 2006 and 2007; the Company's ability to continue to recognize
income from refinancings and sales of communities by ventures; risk
of changes in the Company's critical accounting estimates; risk of
further write-downs or impairments of the Company's assets; risk of
future obligations to fund guarantees and other support
arrangements to some of the Company's ventures, lenders to the
ventures or third-party owners; risk of declining occupancies in
existing communities or slower than expected leasing of new
communities; risk resulting from any international expansion;
development and construction risks; availability of financing for
development, including construction loans as to which we are in
default; risks associated with past or any future acquisitions;
compliance with government regulations; risk of new legislation or
regulatory developments; business conditions and market factors
that could affect occupancy rates at and revenues from the
Company's communities and the value of the Company's properties
generally; competition and our response to pricing and promotional
activities of our competitors; changes in interest rates;
unanticipated expenses; the risks of further downturns in general
economic conditions including, but not limited to, financial market
performance, consumer credit availability, interest rates,
inflation, energy prices, unemployment and consumer sentiment about
the economy in general; risks associated with the ownership and
operation of assisted living and independent living communities;
and other risks detailed in the Company's 2008 Annual Report on
Form 10-K filed with the SEC, as may be amended or supplemented in
the Company's Form 10-Q filings or otherwise. The Company assumes
no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events. DATASOURCE:
Sunrise Senior Living, Inc. CONTACT: Meghan Lublin, Corporate and
Investor Communications, Sunrise Senior Living, +1-703-854-0299 Web
Site: http://www.sunriseseniorliving.com/
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