Sonic Corp., the nation's largest chain of drive-in restaurants, plans to refinance $155 million of its $600 million 2011-1 securitization debt facility.
The new deal will be backed by senior notes that have a fixed interest rate of 3.75%, an anticipated contract monthly weighted average life of seven years and a final legal maturity date in 2043, according to a company press release.
The deal will be privately placed and is expected to close in July.
On May 12, 2011 Barclays Capital acted as sole structuring advisor and joint book-running manager on the $500 million whole business securitization for Sonic.
The transaction was rated ‘BBB’/’Baa2’ by Standard & Poor’s and Moody's Investors Service, respectively, and refinanced the company's entire pre-existing securitization at a 5.50% yield.
In addition, the whole business securitization structure provides the company with a substantially more flexible covenant package than regular way alternatives, including no limitations on restricted payments, limited restrictions on change of control and the most flexible call structure of any previous whole business securitization.