Sonic Expects $241M From Stock, Debt Offering

CHARLOTTE, N.C. (AP) — Auto dealership chain Sonic Automotive Inc. expects to earn $240.9 million from its offering of debt and stock announced earlier in the week.

Sonic said late Thursday it has priced its offering of 9 million shares of Class A common stock at $10.10 per share. Underwriters have a 30-day option to purchase another 1.35 million shares.

Separately, the dealership chain is offering $150 million in senior notes due 2029. Underwriters of that offering have a 30-day option to buy another $22.5 million in notes.

The notes are convertible, under some circumstances, into cash, stock, or a combination of both at the company's discretion. The offerings were first announced on Monday.

Shares of Sonic Automotive rose 30 cents, or 3 percent, to $10.45 in premarket trading on Friday.

The company plans to use the proceeds of both offerings to repay debt on its 4.25 percent senior notes due 2015 and its 6 percent senior notes due 2012. If the company is unable to make the payments or has cash leftover, it use the proceeds to pay down its credit facility.

J.P. Morgan Securities Inc. and BofA Merrill Lynch are joint book-running managers for the offerings.