OKLAHOMA CITY--(BUSINESS WIRE)--
Sonic Corp. (NASDAQ:SONC), the nation's largest chain of drive-in
restaurants, today announced that certain of its subsidiaries (the
"Co-Issuers") have issued $170 million of Series 2018-1 Class A-2 Fixed
Rate Senior Secured Notes (the "2018 Fixed Rate Notes") in a private
securitization transaction. The 2018 Fixed Rate Notes will have an
expected life of seven years and bear interest at 4.026% per annum,
payable monthly. Guggenheim Securities, LLC acted as sole structuring
advisor and sole book-running manager for the transaction.
The net proceeds from the sale of the 2018 Fixed Rate Notes will be used
to repay in full the amount drawn on the Series 2016-1 Variable Funding
Senior Secured Notes, Class A-1 (the "Variable Funding Notes"), together
with related fees and expenses. The Co-Issuers will retain $100 million
in undrawn capacity on the Variable Funding Notes. The remaining net
proceeds will be available for further investment into the business and
to return to shareholders via share repurchase or dividends.
The Co-Issuers are indirect subsidiaries of Sonic Corp. that own
substantially all of the Sonic system's franchising assets and real
estate. The servicing and repayment of the 2018 Fixed Rate Notes will be
made solely from the cash flows derived from these indirect
subsidiaries' assets. Neither Sonic Corp., the ultimate parent of each
of the subsidiaries involved in the securitization, nor any other
subsidiary of Sonic Corp., will be liable for any obligations under the
2018 Fixed Rate Notes.
The 2018 Fixed Rate Notes will not be registered under the Securities
Act and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
This is not an offer to sell or a solicitation of an offer to buy the
SONIC, America's Drive-In is the nation's largest drive-in restaurant
chain serving approximately 3 million customers every day. Nearly 94
percent of SONIC's 3,500 drive-in locations are owned and operated by
local business men and women. For 65 years, SONIC has delighted guests
with signature menu items, 1.3 million drink combinations and friendly
service by iconic Carhops. Since the 2009 launch of SONIC's Limeades for
Learning philanthropic campaign in partnership with DonorsChoose.org,
SONIC has donated $9.5 million to public school teachers nationwide to
fund essential learning materials and innovative teaching resources to
inspire creativity and learning in today's youth. To learn more about
Sonic Corp. (NASDAQ/NM: SONC), please visit sonicdrivein.com
and please visit or follow us on Facebook and Twitter. To learn more
about SONIC's Limeades for Learning initiative, please visit Limeadesforlearning.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
reflect management's expectations regarding future events and operating
performance and speak only as of the date hereof. These forward-looking
statements involve a number of risks and uncertainties. Factors that
could cause actual results to differ materially from those expressed in,
or underlying, these forward-looking statements are detailed in the
company's annual and quarterly report filings with the Securities and
Exchange Commission. The company undertakes no obligation to publicly
release revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unforeseen events, except as required to be reported under the rules and
regulations of the Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180201005875/en/
For Sonic Corp.
Corey Horsch, 405-225-4800
Investor Relations and Treasurer
Source: Sonic Corp.
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