Form 8-K for SUNRISE SENIOR LIVING INC
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7-Oct-2009
Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement
On October 1, 2009, Sunrise Pasadena CA Senior Living, LLC ("Sunrise Pasadena") and Sunrise Pleasanton CA Senior Living, L.P., ("Sunrise Pleasanton" and together with Sunrise Pasadena, the "Sunrise Land Borrowers") entered into a letter agreement (the "Letter Agreement") with Wells Fargo Bank, National Association ("Wells Fargo") regarding that certain Loan Agreement dated September 28, 2007 (the "Loan Agreement") by and between the Sunrise Land Borrowers and Wells Fargo. Both Sunrise Land Borrowers are subsidiaries of Sunrise Senior Living, Inc. ("Sunrise"). Sunrise Pasadena owns undeveloped land located in Pasadena, California, and Sunrise Pleasanton owns undeveloped land located in Pleasanton, California.
Pursuant to the Letter Agreement, among other matters, Wells Fargo agreed to (i) extend the maturity date of the Loan Agreement from October 1, 2009 to November 16, 2009 (the "Extended Maturity Date") and (ii) forbear from enforcing its rights or remedies with respect to breaches of certain financial covenants contained in the Loan Agreement until the earlier to occur of (x) the Extended Maturity Date and (y) any other default under the Loan Agreement. As of October 1, 2009, there was approximately $22 million in outstanding borrowings under the Loan Agreement.
The Sunrise Land Borrowers' obligations under the Loan Agreement are secured by mortgages on the real property owned by the Sunrise Land Borrowers and are guaranteed by Sunrise.
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