Sonida Senior Living, Inc. (NYSE:SNDA) is looking for acquisitions. Sonida Senior Living,an owner-operator of communities and services for seniors, reported the execution of a $47.75 million equity private placement, including an investment from Conversant Capital, the Company's largest shareholder. The Company said it plans to use this new capital for the completion of its balance sheet repositioning, continued investments in value-enhancing community improvements, broader community programming and identified bolt-on acquisition opportunities from its robust pipeline.

"Since Conversant made its original investment in Sonida in November 2021, we've been working diligently with the management team along three key initiatives - improving operations, strengthening the balance sheet and growing the business. Today's transaction allows us to shift the Company's focus towards the third initiative: accelerating the growth of the business," said Michael Simanovsky, Founder and Managing Partner of Conversant Capital. "As counter-cyclical investors, we are very excited about the Company's increasingly active pipeline of acquisitions and look forward to partnering with banks and other asset owners as we continue to grow Sonida's operating platform".

After considering the equity capital for the Protective Life debt purchase and the planned capital expenditure projects described above, the Company will have approximately $25 million of equity capital available for acquisitions and working capital purposes, including near-term opportunities in the Company's pipeline. The Company is engaged in advanced discussions with a private equity sponsor to acquire a majority interest in a four-asset portfolio, with three of the assets reinforcing Sonida's Texas footprint. The Company believes such an acquisition would result in a double-digit stabilized cap rate with minimal incremental general and administrative expenses required to manage the communities.

This acquisition opportunity remains subject to confirmatory due diligence and final documentation. Sonida is actively pursuing additional accretive growth opportunities varying in size, geography and structure. The capital earmarked for growth is expected to provide certainty and speed in executing on near-term, bolt-on investment opportunities as they arise.