Sonic Prices $170 Million Securitized Senior Notes
January 23 2018 - 5:11PM
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 priced $170 million of
Series 2018-1 Class A-2 Fixed Rate Senior Secured Notes ("Senior
Notes"). The Senior Notes will have an expected life of seven years
and bear interest at 4.026% per annum, payable monthly.
The net proceeds from the sale of the Senior 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. Sonic Corp. expects the Senior Notes and
Variable Funding Notes transactions to close on February 1,
2018.
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 Senior 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 Senior Notes.
The Senior 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 Senior Notes.
About Sonic
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.
SONC-F
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180123006566/en/
Sonic Corp.Corey Horsch, (405) 225-4800Vice President of
Investor Relations and Treasurer
Sonic (NASDAQ:SONC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sonic (NASDAQ:SONC)
Historical Stock Chart
From Sep 2023 to Sep 2024