Sonic Automotive, Inc. Enters into the Fifth Amendment to Credit Agreement with PNC Bank, National Association
March 27, 2024 at 04:00 pm EDT
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On March 22, 2024, Sonic Automotive, Inc. and certain of its subsidiaries entered into the Fifth Amendment to Credit Agreement (the ?Amendment?) with PNC Bank, National Association (?PNC?), as administrative agent, and the other financial institutions party thereto. The Amendment amended the Company?s existing Credit Agreement, dated as of November 22, 2019, among the Company, the subsidiaries of the Company from time to time party thereto, the financial institutions party thereto, as lenders, and PNC, as administrative agent, (as amended, the ?Mortgage Facility?). In addition to the various other changes contained therein, the Amendment amended the Mortgage Facility to: (i) add certain specified share exchange transactions as permitted restricted payments and dispositions; and (ii) remove the requirement that the Company maintain a specified consolidated liquidity ratio.
Certain of the lenders under the Mortgage Facility are also parties to other existing lending arrangements with the Company and its subsidiaries. The Company and its affiliates also have commercial banking, investment banking, mortgage financing, retail lending and other lending relationships with certain of the lenders under the Mortgage Facility and/or affiliates of such lenders.
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company operates through three segments. The Franchised Dealerships segment provides comprehensive sales and services, including sales of both new and used cars and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services, collectively, Fixed Operations; and arrangement of third-party financing, extended warranties, service contracts, insurance, and other aftermarket products, collectively, finance and insurance (F&I) for its guests. The EchoPark segment sells used cars and light trucks and arranges third-party F&I product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports segment offers guests sales of both new and used powersports vehicles, such as motorcycles, personal watercraft, and all-terrain vehicles; Fixed Operations activities; and F&I services.