Sonic Announces Financing Transaction
- The last financing occurred in May 2016 with the issuance of $425 million of 2016-1 Senior Secured Fixed Rate Notes, the repayment of approximately $268 million of the 2011-1 Senior Secured Fixed Rate Notes, and the refinancing of the 2011-1 Variable Funding Senior Secured Notes, Class A-1.
- Sonic's subsidiaries intend to issue approximately $170 million of new fixed rate notes.
Sonic's subsidiaries also expect to reduce the capacity available
under their securitized revolving credit facility of Series 2016-1
Variable Funding Senior Secured Notes, Class A-1 from
$150 millionto $100 million.
The consummation of the offering is subject to market and other conditions and is anticipated to close in the second fiscal quarter of 2018. However, there can be no assurance that Sonic's subsidiaries will be able to successfully complete the financing transaction, either on the terms described or at all.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the new fixed rate notes or any other security. The notes to be offered have not been, and will not be, registered under the Securities Act of 1933 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 of 1933.
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
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
Corey Horsch, 405-225-4800
Vice President of Investor Relations and Treasurer