Sonic Announces Financing Transaction
January 16 2018 - 8:00AM
Business Wire
Sonic Corp. (NASDAQ:SONC), the nation's largest chain of
drive-in restaurants, today announced that certain of its
subsidiaries intend to complete a financing transaction, which will
include the sale of a new series of securitized debt.
- 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 million to $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.
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/20180116005568/en/
Sonic Corp.Corey Horsch, 405-225-4800Vice President of Investor
Relations and Treasurer
Sonic (NASDAQ:SONC)
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