New Issue: Sonic Automotive sells $200 million 10-year notes to yield 8 7/8%

By Paul A. Harris

St. Louis, Aug. 7 - Sonic Automotive, Inc. sold $200 million of 8 5/8% senior subordinated notes due Aug. 15, 2013 (B2/B+) at 98.3628 to yield 8 7/8%, according to a syndicate source.

Price talk was for a yield in the 8 5/8% area.

Banc of America Securities, JP Morgan and Merrill Lynch & Co. were joint bookrunners on the Rule 144A/Regulation S deal. Deutsche Bank Securities Inc. was co-manager.

Sonic Automotive will use proceeds to redeem its 11% senior subordinated notes due 2008, repay part of its revolver and for general corporate purposes including future acquisitions.

The issuer is a Charlotte, N.C.-based auto retailer.

Issuer:	Sonic Automotive, Inc.
Amount:	$200 million
Maturity:	Aug. 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities, JP Morgan, Merrill Lynch (joint)
Co-managers:	Deutsche Bank Securities
Coupon:	8 5/8%
Price:	98.3628
Yield:	8 7/8%
Spread:	466 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:	Aug. 12, 2003
Ratings:	Moody's: B2
	Standard & Poor's: B+
Cusip:	83545GAF9
Price talk:	8 5/8% area

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