Sonic Corp. (Nasdaq/NM:SONC)
today announced that it has completed the private placement of $30 million in Senior Notes with
the assistance of Bank of America Securities. The Notes were issued in two series maturing in
2008 and 2011 at fixed interest rates averaging 6.8%. Proceeds from the financing will be used to
reduce the company’s bank line of credit and for general corporate purposes.

“The Senior Note offering allows us to take advantage of a favorable interest rate environment by
locking in today’s attractive interest rates for up to 10 years, ” said Sonic’s Chairman and Chief
Executive Officer, Clifford Hudson. “In addition, this transaction frees up availability under our Bank
line of credit and reduces the amount of interest rate risk on the company’s income statement.”

Separately, the company reported that strong sales momentum, which began in the company’s
third fiscal quarter, continued during June and July. Fourth quarter system-wide same-store sales,
through July, are estimated to have been slightly ahead of the anticipated range of 2% to 4%. The
company also remains comfortable with the market’s expectations for earnings growth in the fourth
quarter of fiscal 2001, as indicated by the current analysts’ consensus earnings estimate of $0.47
per diluted share. In the fourth quarter last year, Sonic reported revenues of $81.5 million and net
income of $10.8 million or $0.40 per diluted share. The company expects to report results for the
fourth quarter ended August 31, 2001, in mid-October.

“We are pleased that our brand continues to resonate strongly with customers,” Hudson
commented. “Our success in driving sales is a direct result of rising brand awareness fueled by
increased media spending and other initiatives, including successful new product introductions
and a redesigned menu. Our efforts to expand our penetration of under-served day parts, including
an expanded breakfast test and, during June and July, a Sonic Nights program featuring extended
evening hours, also have played a key role in our ongoing sales strength.”

News, Sonic