Sonida Senior Pact to provide for $270M bridge debt financing

Sonida Senior Living, Inc. (NYSE: SNDA) has secured $900 million in permanent debt financing to support its strategic merger with CNL Healthcare Properties, Inc. (CHP), with an accordion feature allowing expansion to $1.25 billion according to the announcement. The financing includes a $375 million four-year secured revolving credit facility, two term loans of $262.5 million each (3-year and 5-year terms), and a $350 million uncommitted capacity option. The facilities are secured by equity interests in the company's borrowing base assets and include mechanisms to transition to unsecured status upon meeting covenant requirements.

This debt structure replaces the initial $900 million 364-day bridge loan facility previously arranged by RBC Capital Markets and BMO Capital Markets, which was intended to fund the cash portion of the $1.8 billion merger and repay CHP's existing corporate debt as reported. The permanent facilities reduce reliance on short-term financing and provide liquidity for Sonida's acquisition strategy. The remaining $300 million of the bridge loan is expected to be replaced by property-level financing according to the announcement.

The merger, announced in November 2025, will combine Sonida's 97 senior housing communities with CHP's 69 facilities, creating a portfolio of approximately 16,785 units across 20 states as detailed. The new debt terms reflect improved borrowing costs and align with traditional REIT financing structures, according to Sonida's CEO, Brandon Ribar.

BMO Capital Markets and RBC Capital Markets served as joint bookrunners, while JPMorgan Chase, KeyBank, and others participated as co-syndication agents as reported. The transaction remains subject to regulatory approvals and stockholder votes.

Source: Sonida Senior Living Investor Relations, January 5, 2026.