Sonic Automotive, Inc. Announces Proposed Public Offering of Common Stock
5 February 1999
Sonic Automotive, Inc. Announces Proposed Public Offering of Common StockCHARLOTTE, N.C., Feb. 4 -- Sonic Automotive, Inc. , an automotive retailer operating in the southeastern, southwestern and midwestern United States, announced today that it has filed a registration statement with the Securities and Exchange Commission for the proposed underwritten public offering of 8,058,293 shares of its Class A Common Stock. The offering is expected to be made in March through Merrill Lynch & Co.; BancBoston Robertson Stephens; Stephens, Inc. and NationsBanc Montgomery Securities LLC. Of the shares offered, 7,000,000 newly issued shares will be sold by Sonic and 1,058,293 shares will be sold on behalf of selling stockholders. Sonic will grant the underwriters an option to acquire up to an additional 1,063,156 shares of Class A Common Stock to cover overallotments, and a selling stockholder will grant a similar option to the underwriters for up to an additional 145,588 shares. Sonic will use net proceeds from the offering to fund pending and future acquisitions and to repay debt incurred to fund previous acquisitions. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.