Sonder Secures $24.5M Funding, Amends Marriott Agreement

Sonder Holdings has raised $24.54 million through a new financing plan, which includes senior secured promissory notes and warrants to buy common stock. The company has also amended its agreement with Marriott International and ended its existing loan agreement with Silicon Valley Bank. Sonder's shares surged 8.17% following the announcement.

Sonder Holdings Inc. (NASDAQ: SOND) has raised $24.54 million through a new financing plan, which includes senior secured promissory notes and warrants to buy common stock. The company announced this on August 5, 2025, with the financing consisting of units that comprise senior secured promissory notes and warrants to purchase shares at an exercise price of $1.50 per share [1].

The senior secured promissory notes have a maturity date of July 4, 2026, and accrue interest at a rate of 15.0% per annum, payable in kind quarterly in arrears. Sonder is required to seek shareholder approval for the issuance of the warrants, which will be further described in a proxy statement to be delivered to the stockholders [1].

Additionally, Sonder has entered into an agreement with certain stockholders holding a majority of voting power to ensure stockholder approval on matters related to the financing. The company has also amended its agreement with Marriott International Inc. (NASDAQ: MAR), converting up to one year's worth of fees into obligations under senior secured notes [1].

In a significant move, Sonder has terminated its Loan and Security Agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (SVB), while maintaining letters of credit, which enhances financial agility without expanding debt exposure [1].

The additional liquidity is intended to help Sonder execute its strategic plan and position the company for long-term growth and value creation, according to Janice Sears, Interim Chief Executive Officer [1].

Following the announcement, Sonder's shares surged by 8.17% in after-hours trading on Thursday, closing at $2.25 [3].

References:
[1] Sonder Holdings Inc. (2025). Sonder Holdings Inc. Secures $24.54 Million in New Financing. Retrieved from https://investors.sonder.com/news-releases/news-release-details/sonder-holdings-inc-secures-2454-million-note-and-enters
[3] Yahoo Finance. (2025). Sonder Secures New Funding, Amends Marriott Agreement. Retrieved from https://finance.yahoo.com/news/sonder-secures-funding-amends-marriott-112555593.html