Sonic Reveals Pricing of $200 Million Of Senior Subordinated Notes

Earlier today, Sonic Automotive announced pricing of its private offering of $200 million in aggregate principal amount of 7.00 percent senior subordinated notes due in 2022 to qualified institutional buyers.

Officials explained the notes were priced at 99.110 percent of the principal amount thereof, resulting in a yield to maturity of 7.125 percent in an offering that’s expected to close on July 2.

Sonic indicated that the net proceeds of this offering will be used to repurchase some or all of its outstanding 5.0 percent convertible senior notes due 2029 pursuant to an offer to exchange shares of its Class A common stock plus cash, and to pay related fees and expenses; and any remaining amount will be used for general corporate purposes, including repurchases of shares of its Class A common stock.

“The notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws,” Sonic officials emphasized.