Sonder Holdings Inc. Announces Amendment to Financing Agreement and Provides Update on Portfolio Optimization Program

Core Viewpoint - Sonder Holdings Inc. is actively optimizing its portfolio to enhance liquidity and improve financial performance through strategic exits and rent reductions from underperforming properties [5][9][13]. Group 1: Financial Actions - The company has entered into an amendment to its existing note and warrant purchase agreement, securing an additional $10 million in commitments to improve unrestricted liquidity [5]. - As part of its portfolio optimization program, Sonder has signed agreements to exit or reduce rent for approximately 105 buildings, totaling 4,300 units, which is expected to yield annualized free cash flow improvements exceeding $40 million [9]. - The company anticipates termination fees of less than $20 million associated with these agreements, with around 60 out of 80 finalized exit agreements already executed [9]. Group 2: Operational Strategy - Sonder's portfolio optimization program was initiated to address losses from select underperforming properties and to align rents with current market conditions [9]. - The company aims to achieve sustainable positive free cash flow and optimize its cost structure, reflecting a commitment to financial resilience and operational efficiency [13]. Group 3: Market Position - Sonder is positioned as a next-generation hospitality company, leveraging technology and design to redefine guest experiences across over 40 markets in ten countries [7]. - The company emphasizes its innovative, tech-enabled service model, which includes self-service features and 24/7 support, enhancing the overall guest experience [7].