New Issue: Sonic Automotive prices $300 million 10-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., May 6 - Sonic Automotive, Inc. priced a $300 million issue of 10-year senior subordinated notes (B3/BB-/) at par to yield 5% on Monday, according to a syndicate source.

The yield printed at the tight end of the 5% to 5 1/8% yield talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.

Proceeds will be used to redeem the company's outstanding 9% senior subordinated notes due 2018, with any remaining proceeds for general corporate purposes, including the acquisition and development of dealerships and related real property, repurchases of class A common stock and other working capital needs.

Sonic Automotive is an automotive retailer based in Charlotte, N.C.

Issuer:	Sonic Automotive, Inc.
Amount:	$300 million
Maturity:	May 15, 2023
Securities:	Senior subordinated notes
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	323 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2018, then callable at 102.5, 101.667, 100.833, par on and after May 15, 2021
Equity clawback:	35% at 105 until May 15, 2016
Change-of-control put:	101%
Trade date:	May 6
Settlement date:	May 9
Ratings:	Moody's: B3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5% to 5 1/8%
Marketing:	Quick to market

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