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Non-Tech : Sonic Automotive -- Ignore unavailable to you. Want to Upgrade?

To: Cary C who wrote (32)	7/8/1998 5:54:00 PM
From: Phil Jacobson	Respond to of 60

Great insight and comments on SAH Cary. Maybe they'll read it and implement your financial strategy - there's a lot of others that would be worse! Phil

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