Sonic Automotive Enters Material Definitive Agreement

TL;DR

Sonic Automotive just signed a big deal, could affect their finances.

AI Summary

On March 22, 2024, Sonic Automotive, Inc. entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Delaware, filed an 8-K report detailing this event. The filing does not specify the exact nature or dollar amount of the obligation.

Why It Matters

This filing indicates a significant financial commitment or obligation for Sonic Automotive, which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risk or opportunity that is not fully detailed.

Key Players & Entities

• SONIC AUTOMOTIVE, INC. (company) — Registrant
• March 22, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• 4401 Colwick Road Charlotte, North Carolina 28211 (address) — Address of 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

Filing Documents

• sah-20240322.htm (8-K) — 30KB
• exhibit101-pncfifthamendme.htm (EX-10.1) — 1270KB
• 0001043509-24-000033.txt ( ) — 1627KB
• sah-20240322.xsd (EX-101.SCH) — 2KB
• sah-20240322_lab.xml (EX-101.LAB) — 22KB
• sah-20240322_pre.xml (EX-101.PRE) — 12KB
• sah-20240322_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement On March 22, 2024, Sonic Automotive, Inc. (the "Company") and certain of its subsidiaries entered into the Fifth Amendment to Credit Agreement (the "Amendment") with PNC Bank, National Association ("PNC"), as administrative agent, and the other financial institutions party thereto. The Amendment amended the Company's existing Credit Agreement, dated as of November 22, 2019, among the Company, the subsidiaries of the Company from time to time party thereto, the financial institutions party thereto, as lenders, and PNC, as administrative agent, (as amended, the "Mortgage Facility"). In addition to the various other changes contained therein, the Amendment amended the Mortgage Facility to: (i) add certain specified share exchange transactions as permitted restricted payments and dispositions; and (ii) remove the requirement that the Company maintain a specified consolidated liquidity ratio. Certain of the lenders under the Mortgage Facility are also parties to other existing lending arrangements with the Company and its subsidiaries. The Company and its affiliates also have commercial banking, investment banking, mortgage financing, retail lending and other lending relationships with certain of the lenders under the Mortgage Facility and/or affiliates of such lenders. The foregoing summary of the Mortgage Facility does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, a copy of which is filed as an exhibit to this Current Report on Form 8-K and incorporated into this Item 1.01 by reference. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 is incorporated by reference into this Item 2.03.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Fifth Amendment to Credit Agreement, dated as of March 22, 2024, among Sonic Automotive, Inc.; the subsidiaries of Sonic Automotive, Inc. named therein; each financial institution party thereto; and PNC Bank, National Association, as administrative agent and a lender. 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 27, 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