Sonic Automotive, Inc. (NYSE: SAH – news) and Capital Automotive REIT (Nasdaq: CARS – news) have entered into a commitment to provide Sonic Automotive with up to $75,000,000 in real estate financing through December 31, 2000. This commitment provides a source of funding at attractive rates for Sonic Automotive’s expected real estate needs through the end of 2000.
O. Bruton Smith, the Company’s Chairman and Chief Executive Officer stated, “Our partnership with Capital Automotive, the nation’s leading finance company for automotive retail real estate, continues to grow. This relationship demonstrates Sonic’s ability to access a variety of capital markets to provide financing for our growth strategies.”
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“Our commitment to Sonic Automotive is another example of Capital Automotive partnering with the strongest large dealership groups in the United States. Sonic is the second largest automotive retailer in the U.S., with industry leading profitability. The funding of this commitment will continue our strategy of generating solid returns and growth from strategic acquisitions,” stated Thomas D. Eckert, President and Chief Executive Officer of Capital Automotive.
About Sonic Automotive, Inc.
Sonic Automotive, Inc. is the second largest automotive retailer in the United States. Including pending acquisitions, the Company operates 173 franchises and 31 collision repair centers in Alabama, California, Florida, Georgia, Maryland, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia. Sonic had revenues of $3.4 billion in 1999, an increase of 109% over 1998. The revenue run rate is estimated at more than $6 billion for 2000. The Company has also experienced eleven consecutive quarters of greater than 50% growth in earnings per share. Sonic Automotive can be reached on the Web at www.sonicautomotive.com.
About Capital Automotive REIT
Capital Automotive, headquartered in McLean, VA, is a self-administered, self-managed real estate investment trust formed to acquire the real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related business. Capital Automotive owns $952 million of automotive retail properties representing 231 locations in 27 states. Additional information on Capital Automotive is available on the Company’s website at www.capitalautomotive.com
