July 29, 2021

Willkie represented Capital Senior Living in the transaction.

Capital Senior Living Corporation (NYSE: CSU), a leading owner-operator of senior living communities across the United States, announced plans to raise up to $152.5 million through (a) the private placement of convertible preferred stock to affiliates of Conversant Capital LLC (“Conversant”) and (b) a proposed common stock rights offering to its existing stockholders. Conversant will partially backstop the rights offering and will provide an incremental $25 million accordion for future investment, subject to certain conditions. Capital Senior Living intends to use the net proceeds of the private placement and rights offering for working capital, to repay debt and to fund accretive growth projects.

The investment will substantially enhance the company’s balance sheet and improve liquidity by providing working capital and addressing near- to medium-term mortgage debt maturities, including all mortgage debt maturities through 2023. Furthermore, by raising capital through a rights offering, the Company enables existing stockholders to participate in the value creation from this new phase of growth.

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.

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.

The Willkie team was led by partners Steven Seidman and Laura Acker and included partner Laura Delanoy and associates Marisa Weisbaum, Madison Wiles-Haffner and Elizabeth Lebens.