Sunrise Receives Proceeds from Venture Refinancing
As disclosed yesterday by Ventas, Inc., a venture owned 85 percent byVentas and 15 percent by Sunrise closed eight first-mortgage loans withFreddie Mac, secured by eight senior housing communities managed by Sunrise,aggregating $126 million. Proceeds of the new $126 million Freddie Mac loanwere used to repay in full $71 million of existing debt of the venture whichwas secured by the same eight assisted living communities and was scheduled tomature in mid-2009. The balance of the new loan proceeds was distributedpro-rata to Ventas and Sunrise, with Sunrise's portion totaling approximately$8.3 million.
"We are pleased that Freddie Mac recognized the strength of this portfolioof our core management product in this difficult economic environment," saidMark Ordan, Sunrise's chief executive officer.
On a preliminary basis, Sunrise expects to recognize approximately $8.3million in equity in earnings as a result of this transaction in the fourthquarter.
About Sunrise Senior Living
Sunrise Senior Living, a McLean, Va.-based company, employs approximately40,000 people. As of September 30, 2008, Sunrise operated 448 communities inthe United States, Canada, Germany and the United Kingdom, with a combinedcapacity for approximately 55,000 residents. At quarter end, Sunrise also had34 communities under construction in these countries with a combined capacityfor 4,277 additional residents. Sunrise offers a full range of personalizedsenior living services, including independent living, assisted living, carefor individuals with Alzheimer's and other forms of memory loss, as well asnursing, rehabilitative and hospice care. Sunrise's senior living services aredelivered by staff trained to encourage the independence, preserve thedignity, enable freedom of choice and protect the privacy of residents. Tolearn more about Sunrise, please visit http://www.sunriseseniorliving.com.
Certain matters discussed in this press release may be forward-lookingstatements within the meaning of the Private Securities Litigation Reform Actof 1995. Although Sunrise believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be noassurances that its expectations will be realized. Sunrise's actual resultscould differ materially from those anticipated in these forward- lookingstatements as a result of various factors, including, but not limited to, theCompany's ability to obtain a covenant waiver or further modification of itsBank Credit Facility; the Company's ability to refinance its Bank CreditFacility and other debt due in 2009 and/or raise funds from other capitalsources; the Company's ability to achieve the anticipated savings from theCompany's cost-savings program; the outcome of the SEC's investigation; theoutcomes of pending putative class action and derivative litigation; theoutcome of the Trinity OIG investigation and qui tam proceeding; the outcomeof the IRS audit of the Company's tax return for the tax year ended December31, 2006 and employment tax returns for 2004, 2005 and 2006; the status of theexploration of strategic alternatives; the Company's ability to continue torecognize income from refinancings and sales of communities by ventures; riskof changes in the Company's critical accounting estimates; risk of furtherwrite-downs or impairments of the Company's assets; risk of future fundings ofguarantees and other support arrangements to some of the Company's ventures,lenders to the ventures or third party owners; risk of declining occupanciesin existing communities or slower than expected leasing of new communities;risk resulting from any international expansion; risk associated with any newservice offerings; development and construction risks; risks associated withpast or any future acquisition; compliance with government regulations; riskof new legislation or regulatory developments; business conditions;competition; changes in interest rates; unanticipated expenses; market factorsthat could affect the value of the Company's properties; the risks of furtherdownturns in general economic conditions; availability of financing fordevelopment; and other risks detailed in the Company's amended 2007 AnnualReport on Form 10-K filed with the SEC, as may be amended or supplemented inthe Company's Form 10-Q filings. The Company assumes no obligation to updateor supplement forward-looking statements that become untrue because ofsubsequent events.
SOURCE Sunrise Senior Living, Inc.
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