Sonic Announces Pricing of $425 Million Securitized Notes

Sonic Corporation SONC revealed that some of its units have priced Series 2016-1 Class A-2 Fixed Rate Senior Secured Notes for $425 million. According to the company, the Senior Notes will carry an interest rate of 4.472 percent a year with a life term of seven years.

Sonic said the interest would be payable on a monthly basis. The company also indicated that some of its units have also struck a $150 million securitized revolving credit facility. It would have a variable funding.

The company indicated "it does not see borrowings under the Variable Fund Notes facility at closing." The Senior Notes would not be registered under the Securities Act. Also, it may not be offered or sold in the United States in the absence of registration or an applicable exemption from registration requirements.

On Tuesday, Sonic shares traded down by 1.42 percent.