By Lisa Kerner
Charlotte, N.C., July 18 - Sonic Corp. completed its previously announced private placement of $155 million of 3.75% senior secured fixed-rate notes.
Proceeds will be used to prepay $155 million of 2011-1 senior secured fixed-rate notes at par on July 22. The 2011 notes have a fixed interest rate of 5.4% with about $450 million outstanding, according to a company news release.
The 2013 notes will have an expected life of seven years. Interest on the notes is payable monthly, with no scheduled principal amortization.
Indirect subsidiaries of Sonic that hold substantially all of its franchising assets and drive-in real estate issued the notes and are responsible for the repayment.
The 2013 notes were issued under a securitized financing facility, which Sonic's subsidiaries have had in place since May 2011.
Guggenheim Securities, LLC acted as the structuring adviser and bookrunner for the transaction.
Sonic is an Oklahoma City-based chain of drive-in restaurants.
| Issuer: | Sonic Corp.
|
| Issue: | Senior secured fixed-rate notes
|
| Amount: | $155 million
|
| Maturity: | 2043 (expected life of seven years)
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Pricing date: | June 21
|
| Settlement date: | July 18
|
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