Sonic Completes Issuance of Securitized Notes
February 01 2018 - 10:22AM
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 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
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version on businesswire.com: http://www.businesswire.com/news/home/20180201005875/en/
For Sonic Corp.Corey Horsch, 405-225-4800Vice President,
Investor Relations and Treasurer
Sonic (NASDAQ:SONC)
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