SONIDA SENIOR LIVING, INC. (Form: 8-K, Received: 08/05/2022 07:01:41)

Date: August 5, 2022

Sonida Senior Living, Inc.

/s/ David R. Brickman

David R. Brickman

Senior Vice President, Secretary and General Counsel

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) August 2, 2022

Sonida Senior Living, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)


1-13445		75-2678809
(Commission File Number)		(IRS Employer Identification No.)

16301 Quorum Drive Suite 160A Addison, Texas		75001
(Address of Principal Executive Offices)		(Zip Code)

(972) 770-5600

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange

on which registered

Common Stock

SNDA

New York Stock Exchange

Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 2, 2022, Kimberly S. Lody notified Sonida Senior Living, Inc. (the “Company”) that she is resigning as the Company’s President and Chief Executive Officer and as a member of the Board of Directors (the “Board”), effective September 2, 2022.

On August 2, 2022, the Board appointed Brandon M. Ribar, the Company’s Executive Vice President and Chief Operating Officer, as President and Chief Executive Officer of the Company and as a member of the Board, effective September 2, 2022.

Mr. Ribar, age 42, joined the Company in September 2019 and currently serves as the Company’s the Executive Vice President and Chief Operating Officer. Prior to joining the Company, Mr. Ribar served as an executive healthcare consultant primarily focused on improving existing operations and expanding continuing care retirement communities for multiple investment platforms and operators since 2018. From 2014 through 2018, he served as the Senior Vice President, Operations of Golden Living, a post-acute healthcare provider. Prior to serving in such capacity, Mr. Ribar served Golden Living in various roles including Senior Vice President, Operational Finance and Strategy and Senior Vice President, Corporate Strategy and Business Development. Prior to Golden Living, Mr. Ribar served as Vice President of Fillmore Capital Partners from 2004 through 2009. Mr. Ribar received a BSC in Operations and Management Information Systems from Santa Clara University.

In connection with Mr. Ribar’s appointment as President and Chief Executive Officer of the Company, on August 2, 2022, Mr. Ribar and the Company entered into an amendment to Mr. Ribar’s existing employment agreement with the Company, effective September 2, 2022 (the “Employment Agreement Amendment”). Pursuant to the Employment Agreement Amendment, Mr. Ribar’s annual base salary will be no less than $450,000, and Mr. Ribar will be eligible to receive a performance bonus targeted at 75% of Mr. Ribar’s annual base salary. The Employment Agreement Amendment also provides that the Board will nominate Mr. Ribar for reelection to the Board at the expiration of each term of office, and that Mr. Ribar will serve as a member of the Board for each period for which he is so elected.

There are no arrangements or understandings between Mr. Ribar and any other person pursuant to which Mr. Ribar was selected as a director or officer of the Company. There are no family relationships between Mr. Ribar and any director or executive officer, or person nominated or chosen by the Company to become a director or executive officer, of the Company. There are no transactions between Mr. Ribar and the Company that would be reportable under Item 404(a) of Regulation S-K.

The foregoing description of the Employment Agreement Amendment does not purport to be complete and is qualified in its entirety by the reference to the full text of the Employment Agreement Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 7.01

Regulation FD Disclosure.

On August 4, 2022, the Company issued a press release regarding these succession planning matters. A copy of the press release is furnished as Exhibit 99.1.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.


10.1		Employment Agreement Amendment, dated on August 2, 2022 to be effective as of September 2, 2022, by and between Sonida Senior Living, Inc. and Brandon M. Ribar

*99.1		Press Release, dated August 4, 2022.

104		Cover Page Interactive Data File-formatted as Inline XBRL.

*	The exhibit to this Current Report on Form 8-K is not being filed but is being furnished pursuant to Item 9.01.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 10.1

AMENDMENT TO EMPLOYMENT AGREEMENT

This AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is entered on August 2, 2022 to be into effective as of September 2, 2022 the (“Effective Date”), by and between Sonida Senior Living, Inc., a Delaware corporation (formerly Capital Senior Living Corporation) (the “Company”), and Brandon Ribar (“Employee”). Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Employment Agreement (as defined below).

WHEREAS, the Company and Employee are parties to that certain Employment Agreement dated September 10, 2019 (the “Employment Agreement”);

WHEREAS, the parties hereto desire to amend the Employment Agreement as provided in this Amendment;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree to amend the Employment Agreement as follows:

1. Amendments.

(a) Each reference to “Capital Senior Living Corporation” or “CSL” in the Employment Agreement is hereby replaced with references to “Sonida Senior Living, Inc.” and “Sonida”, respectively.

(b) Sections 1, 2, and 3 of the Employment Agreement are hereby amended and restated in their entirety to read as follows:

1. Appointment, Title and Duties; Service on the Board and with Subsidiaries.

Commencing on the Effective Date, Sonida hereby employs Employee to serve in the positions as assigned to him by its Board of Directors (the “Board”), which, as of the Effective Date, shall be as President and Chief Executive Officer. In such capacity, Employee shall report to the Board and shall have such powers, duties and responsibilities as are customarily assigned said position and as may be otherwise assigned to him by the Board.

On or promptly following the Effective Date, Employee will be appointed as a member of the Board and shall serve as a member of the Board without additional compensation. The Board will nominate Employee for reelection to the Board at the expiration of each term of office, and Employee agrees to serve as a member of the Board for each period for which he is so elected. Employee shall, subject to his election as such from time to time and without additional compensation, serve in such additional offices in the Company’s subsidiaries and as member of any committee of the Board or of the board of directors (or similar governing body) of any of the Company or its affiliates to which Employee may be appointed or elected from time to time. Upon termination of Employee’s employment for any reason, Employee shall be deemed to have resigned from the Board and all other offices and board (or similar governing body) memberships, if any, then held with the Company or any of its affiliates, and, at the Company’s request, Employee will execute such documents as are necessary or desirable to effectuate such resignations.

2. Term of Agreement. The term of this Agreement will begin on the Effective Date and end on the first anniversary of the Effective Date; provided, however, that the term of this Agreement will automatically renew at the expiration of the then current term for additional one-year periods unless, at least thirty (30) days prior to the expiration date of the then current term, either party gives written notice of nonrenewal to the other, in which event this Agreement and Employee’s employment with the Company will terminate at the end of the term then in effect. Notwithstanding the foregoing, this Agreement and Employee’s employment with the Company will terminate upon the earlier of: (i) the date of the voluntary resignation of Employee, (ii) the date of Employee’s death or determination of Employee’s disability (as defined in Paragraph 6 below), (iii) the date of notice by Sonida to Employee that this Agreement is being terminated by Sonida whether “for cause” (as defined in Paragraph 6 below) or without cause, or (iv) upon the date a notice of intent to resign for “good reason” (as defined in Paragraph 6 below) is delivered to the Company by Employee.

3. Acceptance of Position. Employee hereby accepts the positions assigned by the Board, and agrees that during the term of this Agreement he will faithfully perform his duties and will devote substantially all of his business time to the business and affairs of Sonida and will not engage, for his own account or for the account of any other person or entity, in any other business or enterprise except with the express written approval of the Board; provided, however, that Employee may (i) may serve on the board of directors of one (1) other public company, (ii) engage in charitable, civic or political activities, and (iii) manage personal, passive investments, in each case so long as such activities do not materially interfere, individually or in the aggregate, with the performance of Employee’s duties hereunder. Employee agrees to perform his duties faithfully, diligently and to the best of his ability, to use his best efforts to advance the best interests of the Company at all times, and to abide by all moral, ethical and lawful policies, guidelines, procedures, instructions and orders given to him by the Company from time to time.

i.) Sonida shall pay or cause to be paid to Employee a base salary at an annual rate of not less than Four Hundred Fifty Thousand Dollars ($450,000.00) per annum, paid in approximately equal installments no less frequently than semi-monthly.

ii.) For the 2022 fiscal year and each fiscal year thereafter during the term of this Agreement, Employee will be eligible to receive an annual bonus in the target amount of 75% of Employee’s base salary.

(d) The last sentence of Section 10 of the Employment Agreement is hereby amended and restated in its entirety to read as follows:

The Employee will promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the term of this Agreement) to establish and to confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).

(e) The last sentence of Section 14 of the Employment Agreement is hereby amended to replace “Paragraphs 7, 8, 9, and 10” with “the last sentence of Paragraph 1.B. and Paragraphs 7 through 19”.

(f) The third paragraph of Section 19 of the Employment Agreement is hereby amended to replace “Employment Period” with “term of this Agreement”.

2. Effect of Amendment. This Amendment shall only serve to amend and modify the Employment Agreement to the extent specifically provided herein. All terms, conditions, provisions and references of and to the Employment Agreement, which are not specifically modified, amended and/or waived herein, shall remain in full force and effect and shall not be altered by any provisions herein contained. All prior agreements, promises, negotiations and representations, either oral or written, relating to the subject matter of this Amendment or the Employment Agreement (as amended hereby) that are not expressly set forth in this Amendment or the Employment Agreement (as amended hereby) are of no force or effect.

3. Miscellaneous. This Amendment may be executed in one or more counterparts, each of which when executed and delivered shall be deemed to be an original and all counterparts taken together shall constitute one and the same instrument. This Amendment and the Employment Agreement (as amended hereby) constitute the entire understanding of the parties hereto with respect to the subject matter hereof, and any and all prior agreements and understandings between the parties regarding the subject matter hereof, whether written or oral, except for the Employment Agreement (as amended hereby), are superseded by this Amendment. Any provision of this Amendment that is invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining provisions hereof, and any invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

[Remainder of page intentionally left blank.]

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of the date first written above.


SONIDA SENIOR LIVING, INC.

By:		/s/ David W. Johnson
		Name: David W. Johnson
		Title: Chairman, Board of Directors

/s/ Brandon Ribar
Brandon Ribar

[Signature Page to Amendment to Employment Agreement]

Exhibit 99.1

LOGO

Sonida Senior Living Announces Leadership Transition

CEO Kim Lody to step down after eight years with the Company

Brandon Ribar promoted from COO to CEO

Dallas, August 4, 2022 – Sonida Senior Living, Inc. (the “Company” or “Sonida”) (NYSE: SNDA), one of the nation’s leading senior living owner-operators, announced that Kimberly S. Lody has decided to step down after an eight-year tenure with the Company, including approximately three and a half years as Chief Executive Officer (CEO). In accordance with the Company’s succession plan, Brandon M. Ribar, the Company’s Chief Operating Officer (COO), has been appointed President and CEO, effective September 2, 2022. Lody will continue to serve in her current role through September 2, 2022 to ensure a smooth transition. Ribar has also been appointed to succeed Lody as a member of the Company’s Board of Directors, effective September 2, 2022.

“I am incredibly grateful for the years spent at Sonida and immensely proud of our team’s numerous strategic accomplishments. As Sonida continues its recovery from the pandemic, I felt the time was right for me to place the reins of the organization into the hands of its next leader. During the past several years, Brandon and I worked closely together on many key operational and balance sheet initiatives, and he is well positioned to lead the Company in its next phase of growth,” said Lody. “It has been an honor to serve the thousands of residents and employees who continuously inspire me with their joy, engagement, and selfless acts of kindness.”

After serving on the Board for approximately four and a half years, Lody was appointed President and CEO of Sonida Senior Living in January 2019. She led the Company through a comprehensive three-year turnaround plan to stabilize, invest, nurture, and grow (“SING”) the organization through an operational and balance sheet transformation. This included overhauling the Company’s operations and resident programming, exiting unprofitable leased assets, and reshaping the Company’s senior leadership team and central office into an efficient operating platform. This process culminated in the Company’s recapitalization in November 2021 and subsequent debt refinancing that addressed the Company’s near-term maturities.

“On behalf of the Board, I want to thank Kim for her leadership and commitment to our residents and stakeholders,” said Dave Johnson, Chairman of the Board of Directors. “Kim led Sonida through a significant transformation while navigating the challenges brought on by COVID-19. She has built a strong team that will continue to thrive and set the Company on a path for future growth and success. We thank Kim for her hard work on behalf of the Company and appreciate her continued support.”

Johnson continued, “The Board is extremely excited to support Brandon as he assumes greater responsibility within the Company. Brandon has demonstrated effective leadership and a depth of operational expertise that has been key to the Company’s turnaround and recovery. He always works tirelessly for our residents, employees and shareholders and brings passion and energy to the team. The Board is confident in his ability to lead Sonida in its next chapter of growth and value creation.”

Mr. Ribar currently serves as Sonida Senior Living’s COO, a role he has held since September 2019. As COO, he was instrumental in planning and implementing improvements to the Company’s operating model as well as navigating the COVID-19 response and driving the Company’s rapid pace of occupancy recovery. He also worked closely with Lody on the Company’s portfolio divestitures, recapitalization transaction, and debt refinancing. Prior to joining Sonida, Ribar served as Senior Vice President of Operations at Golden Living, where he oversaw 305 skilled nursing and assisted living centers with 20,000 employees across 21 states. He also served as Golden Living’s Senior Vice President of Operational Finance and Strategy, leading strategic initiatives within the portfolio’s skilled nursing, rehabilitation, home health and hospice businesses. Before that, he was Vice President of Healthcare Investments at Fillmore Capital Partners, a real estate private equity firm with more than $5 billion in assets under management.

Ribar said, “I want to thank Kim for her leadership and mentorship. It has been a privilege working with her and I am deeply appreciative for her support. Sonida has made tremendous strides over the past several years and is well positioned to accelerate its growth trajectory. There is a compelling opportunity for the Company to leverage our operating platform to address the growing need for our exceptional quality of care at accessible prices. I, and the rest of the leadership team, could not be more excited about what is ahead for our company and stakeholders.”

About the Company

Dallas-based Sonida Senior Living is one of the nation’s leading operators of independent living, assisted living and memory care communities for senior adults. The Company has 76 communities, with capacity for approximately 9,500 residents across 18 states, providing comfortable, safe, affordable communities where residents can form friendships, enjoy new experiences and receive personalized care from dedicated team members who treat them like family.

For more information, visit www.sonidaseniorliving.com or connect with the Company on Facebook, Twitter or LinkedIn.

Contact: Kimberly Lody (972) 308-8323, klody@sonidaliving.com

Forward-Looking Statements Safe Harbor

This press release contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of the Company to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under “Item. 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2022, and also include the following: the impact of COVID-19, including the actions taken to prevent or contain the spread of COVID-19, the transmission of its highly contagious variants and sub-lineages and the development and availability of vaccinations and other related treatments, or another epidemic, pandemic or other health crisis; the Company’s ability to generate sufficient cash flows from operations, additional proceeds from debt financings or refinancings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations; increases in market interest rates that increase the cost of certain of the Company’s debt obligations; increased competition for, or a shortage of, skilled workers, including due to the COVID-19 pandemic or general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in overtime

laws; 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 terms and conditions of its recent forbearance agreements, 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; the risk of oversupply and increased competition in the markets which the Company operates; the Company’s ability to improve and maintain controls over financial reporting and remediate the identified material weakness discussed in its recent Quarterly and Annual Reports filed with the SEC; the departure of the Company’s key officers and personnel; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; risks associated with current global economic conditions and general economic factors such as inflation, the consumer price index, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, and tax rates; and changes in accounting principles and interpretations.