Sonic Automotive Enters Material Agreement, Incurs Financial Obligation

TL;DR

Sonic Automotive just signed a big deal and took on new debt. Watch this space.

AI Summary

Sonic Automotive, Inc. entered into a material definitive agreement on March 13, 2024. This filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The filing includes financial statements and exhibits.

Why It Matters

This filing signals a significant new financial commitment or agreement for Sonic Automotive, which could impact its future financial performance and operational strategy.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and incurring financial obligations can introduce new risks related to the terms of the agreement and the company's ability to manage its debt.

Key Players & Entities

• SONIC AUTOMOTIVE, INC. (company) — Registrant
• March 13, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• 4401 Colwick Road Charlotte, North Carolina 28211 (address) — Principal executive offices
• (704) 566-2400 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.01 — stered Class A Common Stock, par value $0.01 per share SAH New York Stock Exchange
• $550.00 m — ents under the Floor Plan Facilities by $550.00 million, from $2.95 billion to $2.4 billi
• $2.95 billion — lan Facilities by $550.00 million, from $2.95 billion to $2.4 billion, which commitments may
• $2.4 b — $550.00 million, from $2.95 billion to $2.4 billion, which commitments may be increas
• $450.0 million — reased at the Company's option by up to $450.0 million. The commitments under the New Vehicle
• $320.00 million — e Floor Plan Facility were increased by $320.00 million from $1.03 billion to $1.35 billion and
• $1.03 billion — were increased by $320.00 million from $1.03 billion to $1.35 billion and the commitments un
• $1.35 billion — y $320.00 million from $1.03 billion to $1.35 billion and the commitments under the Used Vehi
• $870.00 million — Facility commitments were decreased by $870.00 million from $1.57 billion to $700.00 million.
• $1.57 billion — were decreased by $870.00 million from $1.57 billion to $700.00 million. In addition to th
• $700.00 million — y $870.00 million from $1.57 billion to $700.00 million. In addition to the various other cha
• $0.12 — the basket for quarterly dividends from $0.12 to $0.18 per share of qualified capital
• $0.18 — t for quarterly dividends from $0.12 to $0.18 per share of qualified capital stock; (

Filing Documents

• sah-20240313.htm (8-K) — 39KB
• exhibit101-sixthamendedand.htm (EX-10.1) — 1893KB
• exhibit102-fifthamendedand.htm (EX-10.2) — 93KB
• exhibit103-sixthamendedand.htm (EX-10.3) — 167KB
• exhibit104-sixthamendedand.htm (EX-10.4) — 121KB
• exhibit105-sixthamendedand.htm (EX-10.5) — 186KB
• exhibit106-sixthamendedand.htm (EX-10.6) — 300KB
• 0001043509-24-000032.txt ( ) — 3360KB
• sah-20240313.xsd (EX-101.SCH) — 2KB
• sah-20240313_lab.xml (EX-101.LAB) — 22KB
• sah-20240313_pre.xml (EX-101.PRE) — 12KB
• sah-20240313_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement On March 13, 2024 (the "Effective Date"), Sonic Automotive, Inc. (the "Company") and certain of its subsidiaries entered into the Sixth Amended and Restated Credit Agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle swing line lender, used vehicle swing line lender, letter of credit issuer and a lender, BMW Financial Services NA, LLC, JPMorgan Chase Bank, N.A., Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation, PNC Bank, National Association, VW Credit, Inc., American Honda Finance Corporation, U.S. Bank National Association, Wells Fargo Bank, National Association, MassMutual Asset Finance LLC, TD Bank, N.A., World Omni Financial Corp., and First National Bank of Pennsylvania as lenders. The Credit Agreement amended and restated the Company's existing Fifth Amended, Restated and Consolidated Credit Agreement, dated as of April 14, 2021, among the Company, the subsidiaries of the Company named therein, the lenders party thereto, and Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle swing line lender, used vehicle swing line lender, letter of credit issuer and a lender (as amended prior to the Effective Date, the "Existing Credit Agreement"). The Existing Credit Agreement is comprised of a revolving credit facility (as amended, the "Revolving Credit Facility"), a new vehicle revolving floor plan facility (as amended, the "New Vehicle Floor Plan Facility") and a used vehicle revolving floor plan facility (as amended, the "Used Vehicle Floor Plan Facility and, together with the New Vehicle Floor Plan Facility, the "Floor Plan Facilities"). The Credit Agreement amended the Existing Credit Agreement to, among other things, decrease the aggregate commitments under the Floor Plan Facilities by $550.00 million, from $2.95 billion to $2.4 billion, which commitments may be increased

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Sixth Amended and Restated Credit Agreement, dated as of March 13, 2024, among Sonic Automotive, Inc.; the subsidiaries of Sonic Automotive, Inc. named therein; each lender a party thereto; and Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle swing line lender, used vehicle swing line lender, l/c issuer and a lender. 10.2 Fifth Amended and Restated Company Guaranty Agreement, dated as of March 13, 2024, by Sonic Automotive, Inc. to Bank of America, N.A., as administrative agent for each of the lenders. 10.3 Sixth Amended and Restated Subsidiary Guaranty Agreement, dated as of March 13, 2024, by the subsidiaries of Sonic Automotive, Inc. named therein, as guarantors, to Bank of America, N.A., as administrative agent for each of the lenders. 10.4 Sixth Amended and Restated Securities Pledge Agreement, dated as of March 13, 2024, among Sonic Automotive, Inc., the subsidiaries of Sonic Automotive, Inc. named therein and Bank of America, N.A., as administrative agent for the lenders. 10.5 Sixth Amended and Restated Escrow and Security Agreement, dated as of March 13, 2024, among Sonic Automotive, Inc., the subsidiaries of Sonic Automotive, Inc. named therein and Bank of America, N.A., as administrative agent for each of the lenders. 10.6 Sixth Amended and Restated Security Agreement, dated as of March 13, 2024, among Sonic Automotive, Inc., the subsidiaries of Sonic Automotive, Inc. named therein and Bank of America, N.A., as administrative agent for each of the lenders. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SONIC AUTOMOTIVE, INC. March 19, 2024 By: /s/ STEPHEN K. COSS Stephen K. Coss Senior Vice President and General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR