Sonic announces proposed partial refinancing

 
June 24, 2013

Sonic Corp. has announced that certain of its subsidiaries intend to refinance a portion of the 2011-1 Senior Secured Fixed Rate Notes issued under their securitization debt facility.

Sonic's subsidiaries have entered into a commitment letter, dated June 21, 2013, pursuant to which a purchaser has agreed, subject to the conditions contained in the letter, to purchase at par approximately $155 million of 2013-1 Senior Secured Fixed Rate Notes to be issued under the securitization debt facility. As specified in the commitment letter, the 2013 Notes will have a fixed interest rate of 3.75 percent, an anticipated contract monthly weighted average life of seven years and a final legal maturity date in 2043.

The issuance is expected to close in July, however the commitment letter doesn't expire until August.

The net proceeds from the sale of the 2013 Notes will be used to prepay $155 million of the 2011 Notes at par. The 2013 Notes will be issued pursuant to the securitized financing facility which Sonic's subsidiaries have had in place since May 2011. The 2011 Notes have a fixed interest rate of 5.4 percent with approximately $450 million outstanding, prior to the prepayment.

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Topics: Financing and capital improvements , Operations Management


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