CHARLOTTE, N.C., March 7, 2017 /PRNewswire/ -- Sonic Automotive,
Inc. (NYSE: SAH), one of the nation's largest automotive retailers,
today announced the pricing of its private offering of $250 million in aggregate principal amount of
6.125% Senior Subordinated Notes due 2027 (the "Notes") to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act"), and in
offshore transactions pursuant to Regulation S under the Securities
Act. The Notes were priced at 100% of par, resulting in a
yield to maturity of 6.125%. This offering is expected to
close on March 10, 2017. The
Company intends to use the net proceeds from this offering to
redeem all of its outstanding 7.0% Senior Subordinated Notes due
2022 (the "7.0% Notes") pursuant to the terms of the indenture
governing the 7.0% Notes, and to pay related fees and expenses, and
any remaining amount will be used for general corporate purposes,
including the acquisition and development of dealerships and
related real property, repurchases of shares of the Company's Class
A common stock and other working capital needs.
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.
This press release is being issued pursuant to Rule 135c under
the Securities Act, and is neither an offer to sell nor a
solicitation of an offer to buy the Notes or any other securities
and shall not constitute an offer to sell or a solicitation of an
offer to buy, or a sale of, the Notes or any other securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. In addition,
nothing in this press release shall be deemed to be a notice of
redemption for the 7.0% Notes.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in
Charlotte, N.C., is one of the
nation's largest automotive retailers. Sonic can be reached on the
web at www.sonicautomotive.com.
Forward-Looking Statements
Included herein are forward-looking statements, including
statements pertaining to the closing of a private offering of
securities and redemption of all the outstanding 7.0% Notes. There
are many factors that affect management's views about future events
and trends of the Company's business. These factors involve risk
and uncertainties that could cause actual results or trends to
differ materially from management's views, including without
limitation, economic conditions in the markets in which the Company
operates, new and used vehicle industry sales volume, the success
of the Company's operational strategies, the rate and timing of
overall economic recovery or decline, and the risk factors
described in the Company's Annual Report on Form 10-K for the year
ended December 31, 2016. The Company
does not undertake any obligation to update forward-looking
information.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sonic-automotive-announces-pricing-of-250-million-of-senior-subordinated-notes-300419721.html
SOURCE Sonic Automotive, Inc.