Sonic Automotive Pays Off $289 Million of Public Debt
January 16, 2020 at 07:00 am
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Sonic Automotive Inc. completed the early retirement of all $289.3 million principal amount of its unsecured 5.0% Senior Subordinated Notes due 2023 (the 5.0% Notes) on December 30, 2019. Altogether, in 2019 the company reduced its total debt by approximately $235 million. Sonic funded the redemption of the 5.0% Notes using available liquidity, including cash flow from operations, proceeds from the opportunistic disposition of underperforming franchised dealerships or those expected to have substantial future capital expenditure requirements and borrowings under the Company’s recently completed mortgage facility.
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company operates through three segments. The Franchised Dealerships segment provides comprehensive sales and services, including sales of both new and used cars and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services, collectively, Fixed Operations; and arrangement of third-party financing, extended warranties, service contracts, insurance, and other aftermarket products, collectively, finance and insurance (F&I) for its guests. The EchoPark segment sells used cars and light trucks and arranges third-party F&I product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports segment offers guests sales of both new and used powersports vehicles, such as motorcycles, personal watercraft, and all-terrain vehicles; Fixed Operations activities; and F&I services.
SONIC AUTOMOTIVE, INC. 
