Sonic Automotive, Inc. Announces Real Estate Financing
CHARLOTTE, N.C., June 30 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) and Sonic Automotive, Inc. (NYSE: SAH) have entered into a firm commitment to provide Sonic Automotive with up to $75,000,000 in real estate financing through December 31, 1999. This commitment provides a source of funding at attractive rates for Sonic Automotive's expected real estate needs through the end of 1999.
O. Bruton Smith, the Company's Chairman and Chief Executive Officer, stated, "We evaluated many sources of potential real estate financing for our dealership acquisition strategy. CARS was the most responsive and flexible funding source. We're pleased to have strategically aligned ourselves with the premier source of automobile dealership real estate financing."
"Sonic's recent debt rating upgrade and strong operating performance has expanded the available sources of capital to support Sonic's acquisition program. Lowering the cost of capital is one way Sonic Automotive is creating value by consolidating automotive retailing operations," stated B. Scott Smith, the Company's President and Chief Operating Officer.
Sonic Automotive also has terminated its previously disclosed Strategic Alliance Agreement with Mar Mar Realty Trust and MMR Holdings, LLC, an affiliated entity, for providing real estate financing, acquisition referral and related services. In a separate transaction, Capital Automotive REIT has signed a definitive agreement to acquire MMR Holdings, LLC which owns, or will own after closing of previously announced acquisitions, 52 properties leased or to be leased by Sonic Automotive.
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 113 franchises and 26 collision repair centers. |
