New Issue: Sonic Automotive prices $75 million add-on at 105 to yield 7¾%

By Paul A. Harris

St. Louis, Nov. 12 - Sonic Automotive, Inc. priced a $75 million add-on to its 8 5/8% senior subordinated notes due Aug. 15, 2013 (B2/expected B+) at 105 on Wednesday for a 7¾% yield to worst.

Price talk was 105.25 area.

Banc of America Securities, JP Morgan and Merrill Lynch & Co. were bookrunners on the Rule 144A/Regulation S offer.

Sonic Automotive will use proceeds to repay debt, but ultimately to fund previously announced acquisitions that are expected to close in early 2004.

The original $200 million issue priced on Aug. 7 to yield 8.875%.

Sonic Automotive is a Charlotte, N.C.-based auto retailer.

Issuer:	Sonic Automotive, Inc.
Amount:	$75 million
Security description:	Add-on to 8 5/8% senior subordinated notes due 2013
Bookrunners:	Banc of America Securities, JP Morgan, Merrill Lynch
Maturity:	Aug. 15, 2013
Coupon:	8 5/8%
Price:	105
Yield to worst:	7¾%
Spread:	335 basis points
Call features:	Callable on Aug. 15, 2008 at 104.31, then 102.875, 101.438, declining to par on Aug. 15, 2011 and thereafter
Equity clawback:	Until Aug. 15, 2006 for 35% at 108.625
Settlement date:	Nov. 19, 2003 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: B+ expected
Price talk:	105.25 area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.