CHARLOTTE, N.C., Feb. 21 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc.
(NYSE: SAH), a leader in automotive retailing, announced today that it has
entered into a new $1.2 billion four-year revolving syndicated credit facility
with 14 financial institutions. This new credit facility replaces Sonic's
existing $550 million revolving credit facility and a portion of Sonic's
existing floorplan financing arrangements.
Under the terms of the agreement, up to $700 million of the syndicated
credit facility is available for new vehicle inventory floorplan financing, up
to $150 million is available for used vehicle inventory floorplan financing
and up to $350 million is available for working capital and general corporate
purposes, including acquisitions. Sonic has the ability over the term of the
new facility to expand the facility to provide up to $1.45 billion in total
credit availability upon satisfaction of certain conditions.
Lenders in the syndicated facility include three manufacturer-affiliated
finance companies -- Toyota Motor Credit Corporation, BMW Financial Services
NA, LLC and Nissan Motor Acceptance Corporation -- and 11 commercial banks and
other lending institutions. These lenders are Bank of America, N.A., JP
Morgan Chase Bank, Wachovia Bank, Comerica Bank, Sovereign Bank, SunTrust
Bank, Fifth Third Bank, General Electric Capital Corporation, Key Bank, World
Omni Financial Corporation and Carolina First Bank. The syndication was
arranged through Banc of America Securities LLC and JPMorgan Securities, Inc.
Sonic also anticipates entering into or renewing separate credit
arrangements with BMW Financial Services NA, LLC, DaimlerChrysler Services
North America LLC, Ford Motor Credit Company and General Motors Acceptance
Corporation for floorplan financing. These separate floorplan facilities are
anticipated to provide a total of approximately $620 million of availability
to finance new vehicle inventory purchased from the respective manufacturer
affiliates of these captive finance companies.
Jeffrey C. Rachor, Sonic's President and Chief Operating Officer stated,
"The completion of this facility increases the sources of long-term,
attractively priced capital for Sonic. The combination of commercial lending
institutions and manufacturer-affiliated finance companies participating in
our floorplan and other financing facilities demonstrates the broad
attractiveness of the automotive retailing sector. Many of these entities
have been outstanding financing partners for our Company for many years. We
look forward to continuing to build on those relationships while also
welcoming new lenders to our Company. We believe this new credit facility
provides us with a stable capital structure for the foreseeable future and we
can focus our efforts on successfully deploying that capital consistent with
the more measured acquisition strategy we have previously communicated to the
marketplace."
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is
one of the largest automotive retailers in the United States operating 177
franchises and 38 collision repair centers. Sonic can be reached on the Web
at http://www.sonicautomotive.com.
Included herein are forward-looking statements, including statements
pertaining to the Company's capital structure, new credit facilities and
acquisition opportunities. 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, risks associated with acquisitions and the risk factors
described in Exhibit 99.2 to the Company's Current Report on Form 8-K dated
November 3, 2005. The Company does not undertake any obligation to update
forward-looking information.
SOURCE Sonic Automotive, Inc.
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Related links:
http://www.sonicautomotive.com
Company News On-Call:
http://www.prnewswire.com/comp/125546.html
CONTACT:
Jeffrey C. Rachor, President and Chief
Operating Officer, +1-704-566-2400, or J. Todd Atenhan, Investor
Relations, +1-888-766-4218, both of Sonic Automotive, Inc.
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