Sonic Repurchases $62.5 Million of Debt
OKLAHOMA CITY--(BUSINESS WIRE)--
Sonic Corp. (NASDAQ: SONC), the nation's largest chain of drive-in
restaurants, today announced its repurchase of $62.5 million of the
company's Class A-1 variable funding senior notes in a privately
negotiated transaction.
"We are pleased with the company's ability and efforts over the past two
years to use excess cash effectively to reduce debt and strengthen our
balance sheet," said Clifford Hudson, Chairman and Chief Executive
Officer. "These purchases, combined with regularly scheduled principal
payments, bolster Sonic's capital structure and provide additional
financing flexibility to manage our business."
Sonic expects to recognize a gain of approximately $5 million on the
extinguishment of the notes. With the completion of this transaction,
Sonic's outstanding debt will total approximately $520 million, and
Sonic will have more than $30 million of unrestricted cash available for
general corporate uses. Sonic is scheduled to make an additional $58
million in principal payments over the remainder of fiscal year 2011.
First Quarter Results
Sonic expects to report its results for the first quarter ended November
30, 2010, at the market close on January 4, 2011. The company will
provide an online web simulcast of its earnings release conference call
that afternoon beginning at 5:00 p.m. ET. During that call, management
will comment on Sonic's financial and operational results for the
quarter. An online replay of the conference call will be available
approximately two hours after the conclusion of the live broadcast and
will continue through February 4, 2011. A link to these events will be
available at the investor section of the company's website, www.sonicdrivein.com.
About Sonic
Sonic, America's Drive-In, originally started as a hamburger and root
beer stand in 1953 in Shawnee, Okla., called Top Hat Drive-In, and then
changed its name to Sonic in 1959. The first drive-in to adopt the Sonic
name is still serving customers in Stillwater, Okla. Sonic has more than
3,500 drive-ins coast to coast, where approximately three million
customers eat every day. For more information about Sonic Corp. and its
subsidiaries, visit Sonic at www.sonicdrivein.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.
SONC-G
Sonic Corp.
Claudia San Pedro, 405-225-4846
Vice President of
Investor Relations and Treasurer
Source: Sonic Corp.
News Provided by Acquire Media
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