Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v2.4.0.8
Long-Term Debt (Tables)
9 Months Ended
Sep. 30, 2014
Long-Term Debt

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

 

December 31, 2013

 

 

 

 

 

(In thousands)

 

 

 

2011 Revolving Credit Facility (1)

 

$

-

 

 

$

-

 

 

 

2014 Revolving Credit Facility (2)

 

 

9,779

 

 

 

-

 

 

 

7.0% Senior Subordinated Notes due 2022 (the "7.0% Notes")

 

 

200,000

 

 

 

200,000

 

 

 

5.0% Senior Subordinated Notes due 2023 (the "5.0% Notes")

 

 

300,000

 

 

 

300,000

 

 

 

Notes payable to a finance company bearing interest from 9.52% to 10.52% (with

 

 

 

 

 

 

 

 

 

 

a weighted average of 10.19%)

 

 

5,214

 

 

 

7,629

 

 

 

Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%

 

 

149,364

 

 

 

157,571

 

 

 

Mortgage notes to finance companies-variable rate, bearing interest

 

 

 

 

 

 

 

 

 

 

at 1.25 to 3.50 percentage points above one-month LIBOR

 

 

115,990

 

 

 

79,893

 

 

 

Net debt discount and premium (3)

 

 

(1,785

)

 

 

(1,800

)

 

 

Other

 

 

4,919

 

 

 

5,080

 

 

 

Total debt

 

$

783,481

 

 

$

748,373

 

 

 

Less current maturities

 

 

(24,018

)

 

 

(18,216

)

 

 

Long-term debt

 

$

759,463

 

 

$

730,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)    The interest rate on the 2011 Revolving Credit Facility was 2.00% above LIBOR at December 31, 2013.

 

 

 

(2)    The interest rate on the 2014 Revolving Credit Facility was 2.25% above LIBOR at September 30, 2014.

 

 

 

(3)    September 30, 2014 includes $1.5 million discount associated with the 7.0% Notes, $0.2 million premium associated with

 

 

 

notes payable to a finance company and $0.5 million discount associated with mortgage notes payable.

 

 

 

December 31, 2013 includes $1.6 million discount associated with the 7.0% Notes, $0.4 million premium associated with

 

 

 

the notes payable to a finance company and $0.6 million discount associated with mortgage notes payable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Covenants Include Required Specified Ratios

Sonic was in compliance with the covenants under the 2014 Credit Facilities as of September 30, 2014. Financial covenants include required specified ratios (as each is defined in the 2014 Credit Facilities) of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covenant

 

 

 

 

 

 

 

 

 

Minimum

 

 

Maximum

 

 

 

 

 

Minimum

 

 

Consolidated

 

 

Consolidated

 

 

 

 

 

Consolidated

 

 

Fixed Charge

 

 

Total Lease

 

 

 

 

 

Liquidity

 

 

Coverage

 

 

Adjusted Leverage

 

 

 

 

 

Ratio

 

 

Ratio

 

 

Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required ratio

 

 

1.05

 

 

 

1.20

 

 

 

5.50

 

 

 

September 30, 2014 actual

 

 

1.22

 

 

 

1.74

 

 

 

4.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Interest Received and Paid under Term of Cash Flow Swap

Under the terms of these cash flow swaps, Sonic will receive and pay interest based on the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notional

Amount

 

 

Pay

Rate

 

 

Receive Rate (1)

 

Maturing Date

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

$

2.8

 

 

 

7.100%

 

 

one-month LIBOR + 1.50%

 

July 10, 2017

 

 

$

8.8

 

 

 

4.655%

 

 

one-month LIBOR

 

December 10, 2017

 

 

$

7.5

 

(2)

 

6.860%

 

 

one-month LIBOR + 1.25%

 

August 1, 2017

 

 

$

100.0

 

 

 

3.280%

 

 

one-month LIBOR

 

July 1, 2015

 

 

$

100.0

 

 

 

3.300%

 

 

one-month LIBOR

 

July 1, 2015

 

 

$

6.4

 

(2)

 

6.410%

 

 

one-month LIBOR + 1.25%

 

September 12, 2017

 

 

$

50.0

 

 

 

3.240%

 

 

one-month LIBOR

 

July 1, 2015

 

 

$

50.0

 

 

 

3.070%

 

 

one-month LIBOR

 

July 1, 2015

 

 

$

100.0

 

(3)

 

2.065%

 

 

one-month LIBOR

 

June 30, 2017

 

 

$

100.0

 

(3)

 

2.015%

 

 

one-month LIBOR

 

June 30, 2017

 

 

$

200.0

 

(3)

 

0.788%

 

 

one-month LIBOR

 

July 1, 2016

 

 

$

50.0

 

(4)

 

1.320%

 

 

one-month LIBOR

 

July 1, 2017

 

 

$

250.0

 

(5)

 

1.887%

 

 

one-month LIBOR

 

June 30, 2018

 

 

$

25.0

 

(4)

 

2.080%

 

 

one-month LIBOR

 

July 1, 2017

 

 

$

100.0

 

(3)

 

1.560%

 

 

one-month LIBOR

 

July 1, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The one-month LIBOR rate was 0.153% at September 30, 2014.

 

 

(2) Changes in fair value are recorded through earnings.

 

 

(3) The effective date of these forward-starting swaps is July 1, 2015.

 

 

(4) The effective date of these forward-starting swaps is July 1, 2016.

 

 

(5) The effective date of this forward-starting swap is July 3, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.0% Senior Subordinated Notes Due 2022 [Member]
 
Redemption Price, Percentage

Sonic may redeem the 7.0% Notes in whole or in part at any time after July 15, 2017 at the following redemption prices, which are expressed as percentages of the principal amount

 

 

 

 

 

 

 

 

 

 

 

Redemption

Price

 

 

 

Beginning on July 15, 2017

 

 

103.500

%

 

 

Beginning on July 15, 2018

 

 

102.333

%

 

 

Beginning on July 15, 2019

 

 

101.167

%

 

 

Beginning on July 15, 2020 and thereafter

 

 

100.000

%

 

 

 

 

 

 

 

 

 

5.0% Senior Subordinated Notes due 2023 [Member]
 
Redemption Price, Percentage

Sonic may redeem the 5.0% Notes in whole or in part at any time after May 15, 2018 at the following redemption prices, which are expressed as percentages of the principal amount

 

 

 

 

 

 

 

 

 

 

 

Redemption

Price

 

 

 

Beginning on May 15, 2018

 

 

102.500

%

 

 

Beginning on May 15, 2019

 

 

101.667

%

 

 

Beginning on May 15, 2020

 

 

100.833

%

 

 

Beginning on May 15, 2021 and thereafter

 

 

100.000

%