Sonic Automotive Prices $500M Senior Notes Offering

TL;DR

Sonic Automotive just priced $500M in notes due 2032 to fund growth and pay debt.

AI Summary

On June 19, 2024, Sonic Automotive, Inc. announced the pricing of its offering of $500 million aggregate principal amount of 7.125% senior unsecured notes due 2032. The offering is expected to close on June 26, 2024, subject to customary closing conditions. The net proceeds from the offering will be used for general corporate purposes, including potential acquisitions and debt repayment.

Why It Matters

This debt issuance provides Sonic Automotive with capital for growth and operational flexibility, potentially impacting future acquisitions and financial leverage.

Risk Assessment

Risk Level: medium — Issuing significant debt increases financial leverage and interest expense, which can be risky if business performance declines.

Key Numbers

• $500.0M — Senior Notes Offering (Aggregate principal amount of notes issued to fund corporate purposes.)
• 7.125% — Note Interest Rate (The annual interest rate on the newly issued senior unsecured notes.)
• 2032 — Note Maturity (The year in which the senior unsecured notes are due.)

Key Players & Entities

• Sonic Automotive, Inc. (company) — Registrant
• $500 million (dollar_amount) — Aggregate principal amount of senior unsecured notes
• 7.125% (dollar_amount) — Interest rate on the senior unsecured notes
• 2032 (date) — Maturity year of the senior unsecured notes
• June 19, 2024 (date) — Date of the report
• June 26, 2024 (date) — Expected closing date of the offering

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-20240619.htm (8-K) — 25KB
• 0001043509-24-000059.txt ( ) — 146KB
• sah-20240619.xsd (EX-101.SCH) — 2KB
• sah-20240619_lab.xml (EX-101.LAB) — 22KB
• sah-20240619_pre.xml (EX-101.PRE) — 12KB
• sah-20240619_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. On June 19, 2024, CDK Global ("CDK"), a third-party provider of certain information systems used by Sonic Automotive, Inc. (the "Company"), notified its dealership customers that CDK had suspended certain systems, including systems used by the Company, in response to a cybersecurity incident impacting CDK. As a result, the Company experienced disruptions to its dealer management system ("DMS") hosted by CDK, which supports critical dealership operations including those supporting sales, inventory and accounting functions and its customer relationship management ("CRM") system. All of the Company's dealerships are open and operating utilizing workaround solutions to minimize the disruption caused by this CDK outage. Upon detection of the unauthorized activity, the Company immediately took precautionary containment steps to protect the Company's systems and commenced an investigation of the incident. As the incident is ongoing, the full scope, nature and impact of the incident, including the extent to which the threat actor accessed any customer data, are not yet known. While this incident has had, and is likely to continue to have, a negative impact on the Company's business operations until the relevant systems are fully restored, the Company has not yet determined whether the incident is reasonably likely to have a material impact on the Company's financial condition or results of operations.

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. June 21, 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