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Long-Term Debt (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Long-Term Debt |
Long-term debt consists of the following:
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September 30, 2014
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December 31, 2013
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(In thousands)
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2011 Revolving Credit Facility (1)
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$
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-
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$
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-
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2014 Revolving Credit Facility (2)
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9,779
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-
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7.0% Senior Subordinated Notes due 2022 (the "7.0% Notes")
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200,000
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200,000
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5.0% Senior Subordinated Notes due 2023 (the "5.0% Notes")
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300,000
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300,000
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Notes payable to a finance company bearing interest from 9.52% to 10.52% (with
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a weighted average of 10.19%)
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5,214
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7,629
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Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%
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149,364
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157,571
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Mortgage notes to finance companies-variable rate, bearing interest
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at 1.25 to 3.50 percentage points above one-month LIBOR
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115,990
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79,893
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Net debt discount and premium (3)
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(1,785
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)
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(1,800
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Other
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4,919
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5,080
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Total debt
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$
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783,481
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$
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748,373
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Less current maturities
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(24,018
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)
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(18,216
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)
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Long-term debt
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$
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759,463
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$
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730,157
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(1) The interest rate on the 2011 Revolving Credit Facility was 2.00% above LIBOR at December 31, 2013.
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(2) The interest rate on the 2014 Revolving Credit Facility was 2.25% above LIBOR at September 30, 2014.
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(3) September 30, 2014 includes $1.5 million discount associated with the 7.0% Notes, $0.2 million premium associated with
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notes payable to a finance company and $0.5 million discount associated with mortgage notes payable.
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December 31, 2013 includes $1.6 million discount associated with the 7.0% Notes, $0.4 million premium associated with
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the notes payable to a finance company and $0.6 million discount associated with mortgage notes payable.
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| 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:
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Covenant
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Minimum
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Maximum
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Minimum
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Consolidated
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Consolidated
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Consolidated
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Fixed Charge
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Total Lease
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Liquidity
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Coverage
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Adjusted Leverage
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Ratio
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Ratio
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Ratio
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Required ratio
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1.05
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1.20
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5.50
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September 30, 2014 actual
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1.22
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1.74
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4.14
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| 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:
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Notional
Amount
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Pay
Rate
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Receive Rate (1)
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Maturing Date
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(In millions)
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$
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2.8
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7.100%
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one-month LIBOR + 1.50%
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July 10, 2017
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$
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8.8
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4.655%
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one-month LIBOR
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December 10, 2017
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$
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7.5
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(2)
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6.860%
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one-month LIBOR + 1.25%
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August 1, 2017
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$
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100.0
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3.280%
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one-month LIBOR
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July 1, 2015
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$
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100.0
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3.300%
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one-month LIBOR
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July 1, 2015
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$
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6.4
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(2)
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6.410%
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one-month LIBOR + 1.25%
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September 12, 2017
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$
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50.0
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3.240%
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one-month LIBOR
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July 1, 2015
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$
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50.0
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3.070%
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one-month LIBOR
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July 1, 2015
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$
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100.0
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(3)
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2.065%
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one-month LIBOR
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June 30, 2017
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$
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100.0
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(3)
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2.015%
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one-month LIBOR
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June 30, 2017
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$
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200.0
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(3)
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0.788%
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one-month LIBOR
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July 1, 2016
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$
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50.0
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(4)
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1.320%
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one-month LIBOR
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July 1, 2017
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$
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250.0
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(5)
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1.887%
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one-month LIBOR
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June 30, 2018
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$
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25.0
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(4)
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2.080%
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one-month LIBOR
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July 1, 2017
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$
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100.0
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(3)
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1.560%
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one-month LIBOR
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July 1, 2017
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(1) The one-month LIBOR rate was 0.153% at September 30, 2014.
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(2) Changes in fair value are recorded through earnings.
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(3) The effective date of these forward-starting swaps is July 1, 2015.
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(4) The effective date of these forward-starting swaps is July 1, 2016.
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(5) The effective date of this forward-starting swap is July 3, 2017.
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7.0% Senior Subordinated Notes Due 2022 [Member]
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| 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
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Redemption
Price
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Beginning on July 15, 2017
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103.500
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%
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Beginning on July 15, 2018
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102.333
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%
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Beginning on July 15, 2019
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101.167
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%
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Beginning on July 15, 2020 and thereafter
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100.000
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%
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5.0% Senior Subordinated Notes due 2023 [Member]
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| 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
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Redemption
Price
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Beginning on May 15, 2018
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102.500
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%
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Beginning on May 15, 2019
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101.667
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%
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Beginning on May 15, 2020
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100.833
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%
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Beginning on May 15, 2021 and thereafter
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100.000
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%
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