Sunrise Obtains New York Stock Exchange Listing Extension and Line of Credit Amendment

Category:

Tuesday, September 18, 2007 8:08 am EDT

Dateline:

MCLEAN, Va.

Public Company Information:

NYSE:
SRZ

Sunrise Senior Living, Inc. (NYSE: SRZ) today announced that it (i) has received an additional extension for continued listing and trading of the Company's common stock on the New York Stock Exchange ("NYSE") and (ii) has amended its line of credit agreement to allow for an extension of time to provide the lenders with required financial information.

The extension granted by the NYSE, which is subject to review by the NYSE on an ongoing basis, provides the Company until March 17, 2008 to file its Annual Report on Form 10-K for the year ended December 31, 2006 with the Securities and Exchange Commission. During the extension period, trading of the Company's shares on the NYSE will remain unaffected. The NYSE does not have the discretion under its rules to grant the Company any further extensions beyond March 17, 2008 for filing its 2006 Form 10-K. The Company continues to work diligently to complete ongoing work on its financial restatement.

Additionally, Sunrise has entered into an amendment of its $250 million bank credit facility that matures on December 2, 2009. Under the amendment, the lenders agreed to modify the delivery dates to January 31, 2008 of all 2006 quarterly financial statements, the audited annual 2006 financial statements and the quarterly financial statements for the first three quarters of 2007 required to be delivered to the lenders under the credit agreement. The Company had an outstanding balance of $50 million in borrowing and $71.8 million of letters of credit outstanding under the credit agreement as of September 14, 2007.

In the event the Company is unable to furnish the lenders with all of the financial information required to be furnished under the amendment by January 31, 2008, the lenders under the credit facility could, among other things, agree to a further extension of the delivery dates for the financial information, exercise their rights to accelerate the payment of all amounts then outstanding under the credit agreement and require the Company to replace or provide cash collateral for the outstanding letters of credit, or pursue further modifications with respect to the credit facility. The Company paid the lenders an aggregate fee of approximately $300,000 for entering into the amendment.

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs approximately 40,000 people. As of June 30, 2007, Sunrise operated 453 communities in the United States, Canada, Germany and the United Kingdom, with a combined capacity for more than 53,000 residents. At quarter end, Sunrise also had 38 communities under construction in these countries with a combined capacity for 6,000 additional residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing, rehabilitative and hospice care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise, please visit https://www.sunriseseniorliving.com/.

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward- looking statements are based on reasonable assumptions, there can be no assurances that its expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, completion of the Company's restatement of its historical financial statements, identification of any additional matters requiring restatement, the length of time needed for Sunrise to complete the restatement and for Ernst & Young LLP to complete its procedures for any reason, including the detection of new errors or adjustments, the time required for the special independent committee to complete its review and for the Company to clear comments with the SEC, the findings of the special independent committee review, the time required for the Company to prepare and file an amended 2005 Form 10-K and its Form 10-Qs for the first three quarters of 2006, its 2006 Form 10-K and its Form 10-Qs for the first and second quarters of 2007 and its Form 10-Qs for subsequent quarters that are delayed, the outcome of the SEC's investigation, the outcome of pending putative class action and derivative litigation, the outcome of the Trinity OIG investigation, the outcome of the exploration of strategic alternatives, the delisting of the Company's stock from the NYSE in the event the Company does not file its 2006 Form 10-K prior to the expiration of its NYSE listing extension, the Company's ability to comply with the terms of the amendment of its bank credit facility or to obtain a further extension of the period for providing the lenders with required financial information, development and construction risks, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, the Company's ability to manage its expenses, market factors that could affect the value of the Company's properties, the risks of downturns in general economic conditions, satisfaction of closing conditions, availability of financing for development and acquisitions and other risks detailed in the Company's annual report on Form 10-K filed with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

First Call Analyst:
FCMN Contact: Lisa.mayr@sunriseseniorliving.com

 

Contact:

Sunrise Senior Living, Inc.
Lisa Mayr
Vice President, Investor Relations and Capital Markets
+1-703-744-1787

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