This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sonic Automotive Announces Conclusion Of Exchange Offer

Stocks in this article: SAH

CHARLOTTE, N.C., Aug. 1, 2012 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH) today announced that the Company completed its exchange offer to purchase up to all of its outstanding 5.0% Convertible Senior Notes due 2029 ("5% Notes") with a combination of cash and shares of its Class A common stock.  All but $5,000 in aggregate principal amount of the outstanding 5% Notes were repurchased in the exchange offer.  Sonic paid approximately $137.1 million in cash (including accrued and unpaid interest on the 5% Notes and cash paid in lieu of fractional shares) and issued 4,074,905 shares of Class A common stock.

B. Scott Smith, the Company's President, noted, "As a result of the conclusion of this transaction, along with the Company's recent issuance of $200 million of 7% Senior Subordinated Notes due 2022, Sonic has further strengthened its balance sheet and extended the maturities of its publicly issued debt.  We believe our shareholders will benefit from these transactions as it eliminates the possibility of the 5% Notes being converted into common stock and diluting the value of existing shareholders' positions."

Sonic's Chief Financial Officer, Dave Cosper remarked, "We have simplified our capital structure by eliminating a fairly complex and highly dilutive instrument.  The successful execution of these transactions required a substantial amount of planning and coordination, which was assisted by BofA Merrill Lynch, J.P. Morgan, Wells Fargo, US Bancorp and Comerica Securities.  During the third quarter of 2012, we will finalize the accounting related to the transaction, and we currently estimate that we will recognize a pre-tax charge related to the activities discussed above ranging between $14.0 million and $19.0 million.  We would like to reiterate that we expect our full year 2012 diluted earnings per share from continuing operations to be $1.62 per share to $1.70 per share, excluding the effects of these transactions."

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation's largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to expected earnings and accounting implications from debt repurchase activities. There are many factors that affect management's views about future events and trends of the Company's business.  These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company's annual report on Form 10-K for the year ending December 31, 2011 and quarterly report on Form 10-Q for the period ended June 30, 2012.  The Company does not undertake any obligation to update forward-looking information.  

SOURCE Sonic Automotive, Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs