Sonic Automotive, Inc. Announces Upgrade
22 June 1999
Sonic Automotive, Inc. Announces UpgradeCHARLOTTE, N.C., June 21 -- Sonic Automotive, Inc. is pleased to announce that Moody's Investor Service upgraded Sonic Automotive Inc.'s debt rating on June 16, 1999. The Company's senior implied rating was upgraded from B1 to Ba3. Sonic Automotive, Inc.'s debt rating on its senior subordinated notes was upgraded from B3 to B2. According to Moody's Investor Services' press release, "The upgrade reflects Sonic's improved capital structure following the issuance of common equity and conversion of preferred securities in May 1999. The transactions reduced the Company's current and expected leverage and improved fixed cost coverage. The equity sale also increased liquidity of the common stock, which should enhance the Company's ability to finance future acquisitions with equity. The upgrades also recognize operating margin gains achieved through improved management of used vehicles and an increase in the proportion of revenues derived from high margin, non-vehicle products and services." Sonic Automotive, Inc. is one of the leading automotive retailers in the United States, with operations in Alabama, Florida, Georgia, Maryland, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia. Upon completion of pending acquisitions, Sonic will operate 111 franchises and 28 collision repair centers. Included herein are forward-looking statements, including statements with respect to anticipated revenue growth. There are many factors which affect management's views about future events and trends of the Company's business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation economic conditions, risks associated with acquisitions and the risk factors set forth from time to time in the Company's filings with the Securities and Exchange Commission. Contact: Theodore M. Wright, Chief Financial Officer of Sonic Automotive, Inc., (704) 532-3347. J. Todd Atenhan, Investor Relations of Sonic Automotive, Inc., (888) 766-4218