Capital Senior Living Affirms Special Meeting Vote Results Approving Conversant Capital Investment and Expiration of Rights Offering

Rhea-AI Summary

Capital Senior Living Corporation (NYSE: CSU) announced that all proposals received shareholder approval at a special meeting, including a financing plan with Conversant Capital to raise up to $154.8 million. The company reported that subscription rights for 1,133,941 shares were exercised in the rights offering, generating approximately $34 million in proceeds. These funds will be used for debt maturities and working capital. The rights offering closed on October 27, 2021.

Positive

• Shareholder approval for proposals, allowing for significant financing.
• Successful exercise of subscription rights for 1,133,941 shares, raising approximately $34 million.
• Funds will be used to address debt maturities and working capital needs.

Negative

• Company faces risks related to debt obligations and may not meet future capital needs.
• Dependence on additional capital which may not be available on favorable terms.

Final Results Confirm that All Company Proposals Received Shareholder Approval at Special Meeting

Subscription Rights to Purchase 1,133,941 Shares of Common Stock Were Exercised in the Rights Offering

DALLAS--(BUSINESS WIRE)--

Capital Senior Living Corporation (“Capital Senior Living” or the “Company”) (NYSE: CSU), a leading owner-operator of senior living communities across the United States, today announced that the independent Inspector of Election has certified final vote results from the Special Meeting confirming that all proposals, including the plan to raise up to $154.8 million through a series of financing transactions with Conversant Capital (“Conversant”) (collectively, the “Amended Transactions”), have been approved.

Additionally, the Company announced the results of its common stock rights offering (the “Rights Offering”) that expired at 5:00 p.m., New York City time, on October 27, 2021 (the “Expiration Date”). As of the Expiration Date, subscription rights to purchase 1,133,941 shares were exercised. The Rights Offering gave existing stockholders the right to purchase 1.1 shares of common stock for each share of common stock they held as of the record date of September 10, 2021, at $30 per share.

Capital Senior Living will receive aggregate gross proceeds of approximately $34 million from the Rights Offering and will use the proceeds to address upcoming debt maturities and immediate working capital needs.

Conversant and Arbiter Partners will backstop the rights offering through additional purchases of common stock at the subscription price.

About Capital Senior Living

Dallas-based Capital Senior Living Corporation is one of the nation’s leading operators of independent living, assisted living and memory care communities for senior adults. The Company operates 75 communities that are home to nearly 7,000 residents across 18 states providing compassionate, resident-centric services and care and engaging programming. The Company offers seniors the freedom and opportunity to successfully, comfortably and happily age in place. For more information, visit http://www.capitalsenior.com or connect with the Company on Facebook or Twitter.

About Conversant

Conversant Capital LLC is a private investment adviser founded in 2020. The firm pursues credit and equity investments in the real estate, digital infrastructure and hospitality sectors in both the public and private markets. Further information is available at www.conversantcap.com.

Safe Harbor

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause the Company’s actual results and financial condition to differ materially, including, but not limited to, the satisfaction of all conditions to the closing of the proposed transaction; other risks related to the consummation of the proposed transaction, including the risk that the transaction will not be consummated within the expected time period or at all; the costs related to the proposed transaction; the impact of the proposed transaction on the Company’s business; any legal proceedings that may be brought related to the proposed transaction; the continued spread of COVID-19, including the speed, depth, geographic reach and duration of such spread; new information that may emerge concerning the severity of COVID-19; the actions taken to prevent or contain the spread of COVID-19 or treat its impact; the legal, regulatory and administrative developments that occur at the federal, state and local levels in response to the COVID-19 pandemic; the frequency and magnitude of legal actions and liability claims that may arise due to COVID-19 or the Company’s response efforts; the impact of COVID-19 and the Company’s near-term debt maturities on the Company’s ability to continue as a going concern; the Company’s ability to generate sufficient cash flows from operations, additional proceeds from debt refinancings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations and to fund the Company’s capital improvement projects to expand, redevelop, and/or reposition its senior living communities; the Company’s ability to obtain additional capital on terms acceptable to it; the Company’s ability to extend or refinance its existing debt as such debt matures; the Company’s compliance with its debt agreements, including certain financial covenants, and the risk of cross-default in the event such non-compliance occurs; the Company’s ability to complete acquisitions and dispositions upon favorable terms or at all, including the transfer of certain communities managed by the Company on behalf of other owners; the Company’s ability to improve and maintain adequate controls over financial reporting and remediate the identified material weakness; the risk of oversupply and increased competition in the markets which the Company operates; the risk of increased competition for skilled workers due to wage pressure and changes in regulatory requirements; the departure of the Company’s key officers and personnel; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; the risks associated with a decline in economic conditions generally; the adequacy and continued availability of the Company’s insurance policies and the Company’s ability to recover any losses it sustains under such policies; changes in accounting principles and interpretations; and the other risks and factors identified from time to time in the Company’s reports filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005625/en/

Media Inquiries:

Dan Zacchei / Joe Germani

Sloane & Company

dzacchei@sloanepr.com / jgermani@sloanepr.com

Investor Inquiries:

Chris Hayden

Georgeson LLC

(212) 440-9850, chayden@georgeson.com

Company Contact:

Capital Senior Living

Kimberly Lody

President and Chief Executive Officer

(972) 308-8323, klody@capitalsenior.com

Source: Capital Senior Living Corporation

FAQ

What was the outcome of the Capital Senior Living special meeting?

All proposals, including a financing plan to raise up to $154.8 million, received shareholder approval.

How much capital was raised from the rights offering for CSU?

The rights offering generated approximately $34 million in proceeds.

When did the rights offering for Capital Senior Living expire?

The rights offering expired at 5:00 p.m. New York City time on October 27, 2021.

How many shares were subscribed in the rights offering by CSU shareholders?

Subscription rights for 1,133,941 shares were exercised.

What will the proceeds of the rights offering be used for?

The proceeds will be used to address upcoming debt maturities and immediate working capital needs.