Sonic Automotive Inc.
03/27/2024 | Press release | Distributed by Public on 03/27/2024 14:01
Material Agreement - Form 8-K
Item 1.01. Entry into a Material Definitive Agreement
On March 22, 2024, Sonic Automotive, Inc. (the "Company") and certain of its subsidiaries entered into the Fifth Amendment to Credit Agreement (the "Amendment") with PNC Bank, National Association ("PNC"), as administrative agent, and the other financial institutions party thereto. The Amendment amended the Company's existing Credit Agreement, dated as of November 22, 2019, among the Company, the subsidiaries of the Company from time to time party thereto, the financial institutions party thereto, as lenders, and PNC, as administrative agent, (as amended, the "Mortgage Facility").
In addition to the various other changes contained therein, the Amendment amended the Mortgage Facility to: (i) add certain specified share exchange transactions as permitted restricted payments and dispositions; and (ii) remove the requirement that the Company maintain a specified consolidated liquidity ratio.
Certain of the lenders under the Mortgage Facility are also parties to other existing lending arrangements with the Company and its subsidiaries. The Company and its affiliates also have commercial banking, investment banking, mortgage financing, retail lending and other lending relationships with certain of the lenders under the Mortgage Facility and/or affiliates of such lenders.
The foregoing summary of the Mortgage Facility does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, a copy of which is filed as an exhibit to this Current Report on Form 8-K and incorporated into this Item 1.01 by reference.