Sonder Exited 60 Buildings, Gains $10 Million in Refinancing Deal

Skift Take

Sonder is on a painful drive to rid itself of bad leases, to renegotiate others, and then it has to restate two years of earnings. This isn’t easy stuff.

Sonder gained $10 million in liquidity in a refinancing deal, and announced that it has exited 60 buildings, or 2,300 units, as it seeks to shed underperforming leases.

The company announced Tuesday that since it embarked on a portfolio optimization drive in November, that it signed pacts to exit buildings or reduce rents in 105 buildings, or 4,300 units. It has already left 60 of those buildings.

The contract changes in the 105 buildings is forecast to provide a $40 million annual improvement in free cash flow, Sonder stated. However, it would also cost $20 million in termination fees.

Sonder said it expects to exit 20 additional buildings this year.

The company, which failed to file a 2023 10-K financial report and needs to restate 2022 and 2023 earnings, said Tuesday that the refinancing will “improve the company’s unrestricted liquidity.”

Source link

About The Author

Scroll to Top