Sunrise Senior Living, Inc. (NYSE: SRZ) announced that it has entered into a 13th Amendment to its credit agreement with its bank group extending the maturity date of its credit facility to December 2, 2010. As part of the extension, the requisite lenders under the credit facility consented to the previously disclosed sale of 21 wholly owned assisted living communities to BLC Acquisitions, an affiliate of Brookdale Senior Living Inc. On the closing date of such sale, Sunrise has agreed to make a $28.7 million principal repayment to the lenders, which may include the return of approximately $3.7 million in letters of credit, and to deposit $20 million of the proceeds from the sale into a collateral account held by and pledged to the bank group, which may be used by Sunrise for the purpose of settling claims of other creditors. If the closing of the sale does not occur prior to June 30, 2010, Sunrise will either make a payment equal to the BLC closing payment to the lenders; or make a $5 million principal repayment to the lenders, pay a $1 million extension fee and provide the lenders with certain additional collateral as security for its obligations under the credit agreement.
"This full-year extension of our line is an important step forward in our restructuring," said Mark Ordan, Sunrise’s chief executive officer. "All of our stakeholders benefit from this and we are pleased by the cooperation and support from Bank of America and our other line banks."