US retail dealer group Sonic Automotive on Tuesday said it had arranged new syndicated credit facilities with various financial institutions which mature in August 2012. It also agreed new floorplan arrangements with several manufacturer-affiliated finance companies for floorplan financing of both new and used vehicles. These new deals replace the current facility scheduled to mature next month.
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In a statement, Sonic said up to US$321m of the facility wass available for new vehicle inventory floorplan financing, up to $50m for used vehicle inventory floorplan financing and up to $150mfor working capital and general company use.
The syndication was arranged through Banc of America Securities. Lenders in the new syndicated credit facilities include three manufacturer-affiliated finance companies – DCFS USA, BMW Financial Services NA, and Toyota Motor Credit Corporation – and five commercial banks and other lending institutions – Bank of America, NA; JP Morgan Chase Bank; Wachovia Bank, National Association; (with Wells Fargo Bank National Association, as an LC issuer); Comerica Bank and World Omni Financial Corp.
Sonic has also entered into separate credit arrangements for floorplan financing with each of BMW Financial Services; DCFS USA; Ford Motor Credit Company; General Motors Acceptance Corporation; Toyota Motor Credit Corporation; and World Omni Financial Corp. These separate floorplan facilities provide financing for both new and used vehicle inventory at dealerships associated with the respective manufacturer affiliates of these captive finance companies.
President Scott Smith said: “The refinancing of these facilities is another in a series of financing transactions Sonic has been able to complete over the past year that have greatly strengthened our balance sheet. The entities involved in these credit arrangements have been financing partners for our company for many years. We appreciate both the commercial lending institutions and the manufacturer-affiliated finance companies working together to meet [our] working capital and inventory financing needs.”
