Sep. 17, 2009 (PR Newswire) --
CHARLOTTE, N.C., Sept. 17 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH) today announced it has priced its previously announced concurrent public offerings of Class A common stock and convertible senior notes. The offerings were made pursuant to Sonic Automotive's registration statement (including a prospectus and related preliminary prospectus supplement for each of the common stock and convertible senior notes offerings). The total gross proceeds from the offerings will be approximately $240.9 million, excluding any proceeds attributable to the underwriters' possible exercise of their options to purchase additional securities to cover over allotments as described below. The closing of the offerings is expected to occur on September 23, 2009, subject to customary closing conditions.
Sonic Automotive agreed to sell 9,000,000 shares of its Class A common stock at a public offering price of $10.10 per share. In connection with this offering, Sonic Automotive granted the underwriters a 30-day option to purchase an additional 1,350,000 shares of common stock to cover over allotments.
Sonic Automotive also agreed to sell, concurrent with the sale of Class A common stock, $150,000,000 aggregate principal amount of convertible senior notes due October 1, 2029. In connection with this offering, Sonic Automotive granted the underwriters a 30-day option to purchase up to an additional $22,500,000 aggregate principal amount of the convertible senior notes to cover over allotments. The convertible senior notes will be convertible, under certain circumstances, into cash, shares of Sonic Automotive Class A common stock, or a combination of cash and shares of Sonic Automotive Class A common stock, at the option of Sonic Automotive, at an initial conversion rate of 74.7245 shares of Class A common stock per $1,000 principal amount of convertible senior notes, which is equivalent to an initial conversion price of approximately $13.38 per share of Class A common stock, subject to adjustment in certain circumstances. This initial conversion price represents a premium of 32.5% relative to the public offering price of Sonic Automotive's Class A common stock of $10.10 per share in the common stock offering.
Sonic Automotive may not redeem the convertible senior notes prior to October 1, 2014. Holders of the convertible senior notes may require Sonic Automotive to repurchase the convertible senior notes on October 1, 2014, October 1, 2019 and October 1, 2024 for cash at a purchase price equal to 100% of the principal amount thereof to be repurchased plus accrued and unpaid interest.
