Sonic Automotive : Credit Agreement (Form 8-K)

Termination of a Material Definitive Agreement.

On October 1, 2021, Sonic Automotive, Inc. (the "Company") terminated the credit agreement, dated as of June 23, 2020, with Ally Bank (Ally Capital in Hawaii, Mississippi, Montana and New Jersey) ("Ally"), as lender (the "Credit Facility"). The Credit Facility was originally scheduled to mature on June 22, 2021 and was extended by the mutual consent of the parties to June 21, 2022.

The Credit Facility had revolving borrowing availability of up to $69.0 million which was available to be used for general corporate purposes. The amount available for borrowing under the Credit Facility was directly tied to the appraised value of certain real estate properties of the Company, used as collateral for any funds drawn under the Credit Facility. At no time, including at the time of the termination of the Credit Facility, were there were any amounts outstanding under the Credit Facility. The Credit Facility was terminated by the Company because the Company determined the additional liquidity provided by the Credit Facility was not needed.

The Credit Facility contained usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends and other restricted payments, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions.