Sonic buys back $62.5M in debt

Sonic Corp. said Wednesday it has repurchased $62.5 million of the company’s debt through a privately negotiated deal.

The Oklahoma City, Okla.-based parent company to the 3,500-unit drive-in chain said the purchase, combined with regularly scheduled principal payments, helps to bolster its capital structure and provide added financial flexibility.

Sonic said it expects to see a gain of about $5 million on the extinguishment of the Class A-1 variable funding senior notes.

“We are pleased with the company’s ability and efforts over the past two years to use excess cash effectively to reduce debt and strengthen our balance sheet,” said Clifford Hudson, Sonic’s chairman and chief executive.

Sonic said when the transaction is complete, it will have about $520 million in outstanding debt and more than $30 million of unrestricted cash available for general corporate use.

Contact Paul Frumkin at [email protected]