Sonic To Sell Shares, Notes In Public Offerings

CHARLOTTE, N.C. (AP) — Auto retailer Sonic Automotive Inc. on Monday announced public offerings of its common stock and convertible senior notes.

Sonic said it plans to offer about 9 million shares of its class A common stock in an underwritten registered public offering. It did not give a price for the stock offering.

Sonic also plans to grant that offering's underwriters a 30-day option to buy an additional 1.4 million shares of common stock to cover possible over allotments.

Sonic also plans to also offer about $125 million aggregate of convertible senior notes due 2029 in a public offering. It plans to grant the underwriters of that offering a 30-day option to buy up to an additional $18.8 million of the notes to cover over allotments.

The notes will be convertible, under certain circumstances, into cash, shares of stock, or a combination of both, at Sonic's option. The offering price, interest rate, conversion price and other terms of the notes will be determined by Sonic and the underwriters.

Sonic plans to use the proceeds from the offerings to repay all or part of the principal amount outstanding on its 4.25 percent convertible senior subordinated notes due 2015 and its 6 percent convertible senior subordinated notes due 2012.

J.P. Morgan Securities Inc. and BofA Merrill Lynch are acting as joint underwriters for the offerings.