Sonida Senior Living Announces $47.75 Million Equity Raise to Fund Discounted Debt Purchase, Accretive Capital Investments within the Existing Portfolio and Acquisitions

Sonida Senior Living, Inc. (“Sonida” or the “Company”) (NYSE: SNDA), a leading owner-operator of communities and services for seniors, announced the execution of a $47.75 million equity private placement, including an investment from Conversant Capital, the Company’s largest shareholder. The Company plans to use this new capital for the completion of its balance sheet repositioning, continued investments in value-enhancing community improvements, broader community programming and identified bolt-on acquisition opportunities from its robust pipeline.

The shares were issued at $9.50 per share, a 5% premium to the 30-day volume weighted average price prior to closing. The equity private placement will close in two tranches. The first tranche of $32 million closed on February 1, 2024, and the second tranche of $16 million will close on or around March 31, 2024, subject to shareholder approval of an increase to the Company’s authorized shares of common stock. The holders of a majority of the Company’s voting securities have agreed to vote in favor of such an increase.

“In an economic environment characterized by limited capital and available financing for senior living assets, we believe this transaction reflects our investors’ confidence in Sonida as a premium long-term investment and operating platform with significant upside potential. We could not be more pleased with the ongoing partnership between the Sonida team and our investor base and look forward to completing accretive investments in the near term,” said Brandon Ribar, President and Chief Executive Officer.

“Since Conversant made its original investment in Sonida in November 2021, we’ve been working diligently with the management team along three key initiatives – improving operations, strengthening the balance sheet and growing the business. Today’s transaction allows us to shift the Company’s focus towards the third initiative: accelerating the growth of the business,” said Michael Simanovsky, Founder and Managing Partner of Conversant Capital. “As counter-cyclical investors, we are very excited about the Company’s increasingly active pipeline of acquisitions and look forward to partnering with banks and other asset owners as we continue to grow Sonida’s operating platform.”