News

Sonic completes refinancing on portion of debt

July 19, 2013

Sonic Corp. has issued $155 million of 2013-1 Senior Secured Fixed Rate Notes in a private transaction. The net proceeds of the issuance will be applied to repay approximately $155 million of Series 2011-1 Senior Secured Fixed Rate Notes on July 22.

The 2013 Notes will have an expected life of seven years and interest rates at 3.75 percent per annum, payable monthly, with no scheduled principal amortization. Guggenheim Securities LLC acted as the sole structuring adviser and sole bookrunning manager for the transaction.

"We are very pleased that we were able to leverage the strength of our brand and business model to refinance a portion of our debt at a very attractive rate," said Clifford Hudson, chairman and CEO. "This refinancing further optimizes shareholder value with an estimated $2.0 million to $2.5 million annual decrease in interest expense.”

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