Sonic Automotive offers $250 million 10-year senior subordinated notes in Tuesday drive-by

By Paul A. Harris

Portland, Ore., March 7 – Sonic Automotive, Inc. plans to price $250 million of 10-year senior subordinated notes in a quick-to-market Tuesday transaction, according to market sources.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are managing the sale.

The Rule 144A and Regulation S notes come with five years of call protection.

The Charlotte, N.C.-based automotive retailer plans to use the proceeds to redeem all of its outstanding 7% senior subordinated notes due 2022, with any remaining proceeds to be used for general corporate purposes, including the acquisition and development of dealerships and related real property, repurchases of shares of the company's class A common stock and other working capital needs.

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