Sonic repurchases $62.5 million variable funding senior notes

By Melissa Kory

Cleveland, Dec. 16 - Sonic Corp. repurchased $62.5 million of its class A-1 variable funding senior notes in a privately negotiated transaction.

"We are pleased with the company's ability and efforts over the past two years to use excess cash effectively to reduce debt and strengthen our balance sheet," Clifford Hudson, chairman and chief executive officer, said in a news release.

"These purchases, combined with regularly scheduled principal payments, bolster Sonic's capital structure and provide additional financing flexibility to manage our business."

Sonic expects a gain of $5 million on the extinguishment of the notes.

With the completion of this transaction, Sonic's outstanding debt will total $520 million, and Sonic will have more than $30 million of unrestricted cash available for general corporate uses.

Sonic is an Oklahoma City-based chain of drive-in restaurants.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.