Sunrise Senior Living (NYSE: SRZ) said it has entered into a commitment with KeyBank National Association for a $50 million senior revolving line of credit.
Secured by the company’s 40% equity interest in a joint venture with wholly owned subsidiary of CNL Lifestyle Properties, the credit facility includes a $20 million sublimit to support standby letters of credit and is expandable to $65 million if certain conditions are met. In addition, the line will mature 3 years from closing and includes a one-time right to extend for one year.
The new line of credit will replace Sunrise’s existing credit facility with Bank of America, National Association, under which the company has no current borrowings and is currently unable to draw. As of December 31, 2010, the Company had $13.5 million in outstanding letters of credit under the existing credit facility which are fully cash collateralized.
“We are pleased by KeyBank’s vote of confidence and we are happy to again operate with an available line of credit,” said Mark Ordan, Sunrise’s chief executive officer of Sunrise.
Closing of the credit facility is expected within the next 90 days.
In addition, Sunrise announced intention to offer $75 million principal amount of its junior subordinated convertible notes, subject to market conditions and other factors. The notes will be due in 2041 and are to be offered and sold to qualified institutional buyers.
Based in McLean, Va, Sunrise operated 317 communities located in the United States, Canada and the United Kingdom, with a unit capacity of approximately 31,100 units as of March 31, 2011.