Sonic concludes redemption of all 6% senior secured convertible notes

By Devika Patel

Knoxville, Tenn., Oct. 29 - Sonic Automotive, Inc. said it redeemed all of its 6% senior secured convertible notes at par plus interest using proceeds from its recently completed public offerings.

The company noted that it has reduced its outstanding debt by more than $150 million since the end of 2008.

"This latest step in the restructuring of our balance sheet removes an extremely dilutive security from our capital structure," Sonic president Scott Smith said in a press release. "We are very pleased that, even in the midst of a severe economic downturn, the strength and flexibility of our business model has allowed us to successfully address our near-term debt obligations.

"With our next significant bond maturity not occurring until late 2013, we believe we have a clear road ahead of us for the successful refinancing of our syndicated credit facility, which we expect to have complete by the end of this calendar year."

Sonic is an automotive retailer based in Charlotte, N.C.

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