Sonic Corp., the nation’s largest chain of drive-in restaurants, today announced that certain of its subsidiaries have issued $500 million of Series 2011-1 Fixed Rate Senior Secured Notes, Class A-2 (the “Fixed Rate Notes”) in a private securitization transaction. The Fixed Rate Notes will have an expected life of seven years and bear interest at 5.438% per annum, payable monthly.
The same Sonic subsidiaries also entered into a securitized revolving credit facility of $100 million of Series 2011-1 Variable Funding Senior Secured Notes, Class A-1 (the “Variable Funding Notes”). The revolving credit facility allows for the issuance of up to $100 million of Variable Funding Notes. Interest on the Variable Funding Notes will be payable per annum at rates equal to the Commercial Paper rate plus 3.75%. The company borrowed $35 million under the Variable Funding Notes facility at closing. There is a 0.5% annual commitment fee on the unused portion of the Variable Funding Notes facility.