Sonic Automotive Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Sonic Automotive

SAH 62.94

-1.0%

Nov 3 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Cary C who wrote (32)	7/8/1998 11:24:00 PM
From: Roy S. Newman II	Read Replies (1) of 60

Cary, The co has stated they intend to float a bond issue to finance current and future acquisitions. They have a credit facility with FMCC but is really insufficient to finance an aggressive acquisition strategy. In addition, a portion of the acquisitions are paid for with convertible preferred stock. Therefore, it is unlikely a secondary stock offering is forthcoming. The bond issue maybe the better move. With rates low, the cheap capital is very attractive. Also, the dealership groups are all established and have strong cash flows for which to repay the debt. Best of luck. Roy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next