Sonic Prices $425 Million Securitized Senior Notes
April 12 2016 - 1:00PM
Business Wire
Sonic Corp. (NASDAQ:SONC), the nation's largest chain of
drive-in restaurants, today announced that certain of its
subsidiaries have priced $425 million of Series 2016-1 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 4.472% per annum, payable monthly.
The same Sonic subsidiaries have also entered into a
$150 million securitized revolving credit facility of Series
2016-1 Variable Funding Senior Secured Notes, Class A-1 (the
“Variable Funding Notes”). The company does not expect to have any
borrowings under the Variable Funding Notes facility at
closing.
The net proceeds from the sale of the Senior Notes will be used
to repay in full the remaining Series 2011-1 Class A-2 Fixed Rate
Senior Secured Notes and the Series 2011-1 Class A-1 Variable
Funding Senior Secured Notes, together with related prepayment
premiums, fees and expenses. Sonic Corp. expects the Senior Notes
and Variable Funding Notes transactions to close on May 17,
2016.
The subsidiaries that will issue the Senior Notes 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 more than 3 million customers every day.
Nearly 90 percent of SONIC's 3,500 drive-in locations are owned and
operated by local business men and women. For more than 60 years,
SONIC has delighted guests with signature menu items, more than 1.3
million drink combinations and friendly service by iconic Carhops.
To learn more about Sonic Corp. (NASDAQ/NM: SONC), please visit
www.sonicdrivein.com or follow us on
Facebook and Twitter.
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/20160412006417/en/
Sonic Corp.Corey Horsch, 405-225-4800Vice President, Investor
Relations and Treasurer
Sonic (NASDAQ:SONC)
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