|9 Months Ended|
Sep. 30, 2021
|Subsequent Events [Abstract]|
10. Subsequent Events
On October 8, 2021, we entered into the 2021 Credit Facility Amendment which, among other things: (1) increased the aggregate commitments under the 2021 Revolving Credit Facility and the 2021 Floor Plan Facilities and (2) permitted the issuance of the 2021 Notes. On October 1, 2021, Sonic terminated the 2020 Line of Credit Facility. There were no outstanding borrowings under the 2021 Line of Credit Facility as of September 30, 2021 or at the time of termination. For more information, see Note 6, “Long-Term Debt.”
On October 13, 2021, Sonic issued a notice to redeem the entire $250.0 million aggregate principal amount of the outstanding 6.125% Notes, which occurred on October 28, 2021.On October 27, 2021, Sonic issued $1.15 billion aggregate principal amount of senior notes, consisting of $650.0 million aggregate principal amount of 4.625% Senior Notes due 2029 (the “4.625% Notes”) and $500.0 million aggregate principal amount of 4.875% Senior Notes due 2031 (the “4.875% Notes,” and, together with the 2029 Notes, the “2021 Notes”). The 2021 Notes are fully and unconditionally guaranteed on a joint and several basis by all of the Company’s domestic operating subsidiaries. The Company intends to use the net proceeds from the offering of the 2021 Notes, together with additional borrowings to (1) fund, if consummated, the Acquisition, (2) pay the redemption price for the 6.125% Notes, (3) pay fees and expenses in connection with the Acquisition and the offering of the 2021 Notes and (4) for general corporate purposes, which may include the acquisition and development of dealerships and related real property and the repayment of outstanding indebtedness.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef