Sonida Senior Living enters $137 million term loan agreement with Ally Bank

Sonida Senior Living, Inc. (NYSE:SNDA) announced Wednesday that it has entered into a senior secured term loan agreement with Ally Bank for $137 million. The new loan, referred to as the 2025 Ally Term Loan, was finalized on August 7 and includes a closing fee of 0.75%, or $1 million. According to InvestingPro data, the company currently operates with a significant debt burden of $677.89 million against a market capitalization of $456.55 million.

The agreement amends and restates Sonida’s previous term loan with Ally Bank, which was originally dated March 10, 2022. Under the new terms, the company will receive an initial advance of $122 million, secured by 19 communities. This includes 18 properties from the prior agreement and the Alpharetta community acquired in June 2025. The loan also provides for two additional draws of $7.5 million each, contingent on the company meeting specified debt yield and debt service coverage ratios.

The 2025 Ally Term Loan carries a 36-month maturity and a variable interest rate based on the one-month SOFR plus a 2.65% margin, with a possible reduction to a 2.45% margin depending on performance metrics. As of June 30, 2025, Sonida Senior Living had $112.9 million outstanding under the previous Ally term loan, which had been set to mature in March 2026 with an option for a one-year extension. For deeper insights into Sonida’s financial health and detailed debt analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.

The company also has the ability to request an increase in the term loan of up to $40 million, subject to lender due diligence and review, to finance additional properties.

This information is based on a press release statement contained in a Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Sonida Senior Living Inc. reported an unexpected earnings beat for the second quarter of 2025. The company’s earnings per share stood at -0.16, significantly surpassing the anticipated -0.63, marking a 74.6% positive surprise. This performance was driven by a 26.1% increase in adjusted EBITDA and record occupancy rates. Despite the positive earnings report, the stock experienced a slight decrease in pre-market trading. These developments underscore the company’s robust operational performance.

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