Sunrise Senior Living, Inc. (NYSE: SRZ) announced it has entered into a twelfth amendment to its Bank Credit Facility, which eliminates all financial covenants, except a minimum liquidity covenant, through the December 2, 2009 maturity date. In addition to eliminating all financial covenants, except for a minimum liquidity test, the twelfth amendment relieves Sunrise’s lenders and letter of credit issuers from advancing any additional proceeds of the loans to the borrowers, and from issuing any new letters of credit for the benefit of Sunrise or any of its subsidiaries through the maturity date. As of April 27, 2009, Sunrise had outstanding borrowings of $72.7 million under the Bank Credit Facility and outstanding letters of credit of approximately $24.5 million.
The amendment requires Sunrise to provide the lenders with additional financial, operational and liquidity reports through the maturity date. The amendment further extends and modifies the application of certain existing negative covenants through the maturity date. Some of the additional financial, operational and liquidity reporting is outlined below such as:
- by the 15th day of each calendar month, commencing on May 15, 2009, certification by the Company of the amount of its Cash Balance as of the last day of the immediately preceding month;
- by the 15th day of each calendar month, commencing on May 15, 2009, a detailed report as to the occupancy levels within the facilities owned or operated by the Company or its Subsidiaries as of the last day of the immediately preceding month;
- by the 15th day of each calendar month, commencing on May 15, 2009, a thirteen (13) week cash flow projection for the Company and its Subsidiaries; and
- on or before June 1, 2009, cash flow projections and an analysis of projected liquidity for the Company and its Subsidiaries through the Maturity Date (together with sufficient detail to support and explain the assumptions upon which such projections and analysis are based) demonstrating the ability of the Company and its Subsidiaries to achieve and maintain cash flow and liquidity during the term
“We are very pleased that our bank group has worked with us to maintain our line through its maturity date,” said Mark Ordan, Sunrise’s chief executive officer. “This enables us to continue our restructuring efforts as we focus on our core business.”
For the full 8-K, click here.