Sunrise Receives Proceeds from Venture Refinancing

December 5, 2008

MCLEAN, Va., Dec. 5 /PRNewswire-FirstCall/ — Sunrise Senior Living, Inc.
(NYSE: SRZ) today announced the receipt of approximately $8.3 million of
proceeds resulting from the refinancing of the existing debt of one of its
joint ventures.

As disclosed yesterday by Ventas, Inc., a venture owned 85 percent by
Ventas and 15 percent by Sunrise closed eight first-mortgage loans with
Freddie Mac, secured by eight senior housing communities managed by Sunrise,
aggregating $126 million. Proceeds of the new $126 million Freddie Mac loan
were used to repay in full $71 million of existing debt of the venture which
was secured by the same eight assisted living communities and was scheduled to
mature in mid-2009. The balance of the new loan proceeds was distributed
pro-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 portfolio
of our core management product in this difficult economic environment,” said

Mark Ordan, Sunrise’s chief executive officer.

On a preliminary basis, Sunrise expects to recognize approximately $8.3
in equity in earnings as a result of this transaction in the fourth

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs approximately
40,000 people. As of September 30, 2008, Sunrise operated 448 communities in
the United States, Canada, Germany and the United Kingdom, with a combined
capacity for approximately 55,000 residents. At quarter end, Sunrise also had
34 communities under construction in these countries with a combined capacity
for 4,277 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 http://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, the
Company’s ability to obtain a covenant waiver or further modification of its
Bank Credit Facility; the Company’s ability to refinance its Bank Credit
Facility and other debt due in 2009 and/or raise funds from other capital
sources; the Company’s ability to achieve the anticipated savings from the
Company’s cost-savings program; the outcome of the SEC’s investigation; the
outcomes of pending putative class action and derivative litigation; the
outcome of the Trinity OIG investigation and qui tam proceeding; the outcome
of the IRS audit of the Company’s tax return for the tax year ended December
31, 2006
and employment tax returns for 2004, 2005 and 2006; the status of the
exploration of strategic alternatives; the Company’s ability to continue to
recognize income from refinancings and sales of communities by ventures; risk
of changes in the Company’s critical accounting estimates; risk of further
write-downs or impairments of the Company’s assets; risk of future fundings of
guarantees and other support arrangements to some of the Company’s ventures,
lenders to the ventures or third party owners; risk of declining occupancies
in existing communities or slower than expected leasing of new communities;
risk resulting from any international expansion; risk associated with any new
service offerings; development and construction risks; risks associated with
past or any future acquisition; compliance with government regulations; risk
of new legislation or regulatory developments; business conditions;
competition; changes in interest rates; unanticipated expenses; market factors
that could affect the value of the Company’s properties; the risks of further
downturns in general economic conditions; availability of financing for
development; and other risks detailed in the Company’s amended 2007 Annual
Report on Form 10-K filed with the SEC, as may be amended or supplemented in
the Company’s Form 10-Q filings. The Company assumes no obligation to update
or supplement forward-looking statements that become untrue because of
subsequent events.

SOURCE Sunrise Senior Living, Inc.

Source: newswire

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