SOND - Sonder Holdings Inc. Announces Amendment to Financing Agreement and Provides Update on Portfolio Optimization Program | Benzinga
SAN FRANCISCO, June 11, 2024 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (NASDAQ:SOND) ("Sonder" or the "Company"), a leading next-generation hospitality company that is redefining the guest experience through technology and design, today announced that it has entered into an amendment to its existing note and warrant purchase agreement (the "Financing") with a syndicate of investors, which provides for, among other things, additional commitments with an aggregate principal amount of $10 million, which will improve the Company's unrestricted liquidity.
Update on Portfolio Optimization Program
As announced in November 2023, Sonder implemented a portfolio optimization program to mitigate losses related to select underperforming properties and assess the Company's portfolio of rents relative to current operations and the existing market rents. As of June 10, 2024, the Company has signed agreements to exit or reduce rent for approximately 105 buildings (4,300 units), which is expected to lead to estimated annualized run-rate free cash flow improvements of over $40 million. The Company expects termination fees of less than $20 million associated with these agreements. Of the approximately 80 buildings (3,200 units) with finalized exit agreements, the Company has already exited approximately 60 buildings (2,300 units) and expects to exit the remaining buildings throughout the remainder of 2024.
Francis Davidson, Co-Founder and CEO of Sonder, said, "Sonder's business has shown remarkable resilience and we continue to take decisive action to optimize our cost structure and deliver sustainable positive free cash flow as soon as possible. The confidence from our investors is a testament to the force of our global brand and the meaningful progress we have made to ...