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

Key Points

• Sonder gained $10 million in liquidity and exited 60 buildings as part of a portfolio optimization.
• The company expects a $40 million annual improvement in free cash flow from contract changes in 105 buildings, with less than $20 million in termination fees.
• Sonder needs to restate its earnings for 2022 and 2023 and aims to achieve sustainable positive free cash flow while maintaining high-quality guest experiences.

Summary

Sonder has gained $10 million in liquidity through a refinancing deal and has exited 60 buildings, or 2,300 units, as part of a portfolio optimization effort. The company has signed agreements to exit or reduce rents in 105 buildings, which is expected to improve annual free cash flow by $40 million at a cost of less than $20 million in termination fees. Additionally, Sonder needs to restate its earnings for 2022 and 2023 and has yet to file its 2023 10-K financial report. The company aims to achieve sustainable positive free cash flow and maintain high-quality guest experiences.