SONIC AUTOMOTIVE INC 8-K

What Happened
Sonic Automotive, Inc. announced in an 8-K filed April 2, 2026 that on March 27, 2026 it entered a Bridge Facility Credit Agreement with PNC Bank, N.A. and borrowed the full $150.0 million available under the facility. The loan is a senior unsecured term loan and will mature on the earlier of 364 days after the closing date or upon refinancing of Sonic’s existing PNC Mortgage Facility.

Key Details

• Lender and agent: PNC Bank, National Association (PNC) as administrative agent and lender.
• Amount: $150,000,000 borrowed in full on the Closing Date (March 27, 2026).
• Maturity: earlier of (i) 364 days after closing or (ii) occurrence of a refinancing of the PNC Mortgage Facility.
• Interest: borrower’s option of (i) Term SOFR + 2.50% per annum or (ii) Base Rate + 1.50% per annum.
• Other terms: prepayments allowed without penalty; customary reps, affirmative/negative covenants and events of default, including cross-defaults and change-of-control provisions. The PNC Mortgage Facility remains outstanding.

Why It Matters
This filing creates a new, material short-term debt obligation for Sonic ($150M) and gives the company liquidity that could be used pending a longer-term refinancing of its mortgage facility. The bridge is unsecured and includes customary covenants that may limit future indebtedness, dividends, capital expenditures or asset sales while in effect. Investors should note the interest spread, the short maturity tied to refinancing activity, and the potential for immediate repayment if an event of default occurs.