Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.4.0.3
Long-Term Debt (Tables)
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Long-Term Debt

Long-term debt consists of the following:

 

 

 

March 31, 2016

 

 

December 31, 2015

 

 

 

(In thousands)

 

2014 Revolving Credit Facility (1)

 

$

3,690

 

 

$

4,203

 

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

 

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

 

 

183,885

 

 

 

168,410

 

Mortgage notes to finance companies-variable rate, bearing interest at 1.25 to 2.80

   percentage points above one-month or three-month LIBOR

 

 

165,014

 

 

 

150,961

 

Net debt discount and premium (2)

 

 

(1,489

)

 

 

(1,562

)

Debt issuance costs

 

 

(12,414

)

 

 

(12,884

)

Other

 

 

5,058

 

 

 

5,454

 

Total debt

 

$

843,744

 

 

$

814,582

 

Less current maturities

 

 

(26,679

)

 

 

(33,437

)

Long-term debt

 

$

817,065

 

 

$

781,145

 

 

(1)

The interest on the 2014 Revolving Credit Facility was 2.25% above LIBOR at March 31, 2016 and December 31, 2015.

(2)

March 31, 2016 includes a $1.3 million discount associated with the 7.0% Notes and a $0.2 million discount associated with mortgage notes payable. December 31, 2015 includes a $1.3 million discount associated with the 7.0% Notes and a $0.3 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 March 31, 2016. Financial covenants include required specified ratios (as each is defined in the 2014 Credit Facilities) of:

 

 

 

Covenant

 

 

 

Minimum

Consolidated

Liquidity

Ratio

 

 

Minimum

Consolidated

Fixed Charge

Coverage

Ratio

 

 

Maximum

Consolidated

Total Lease

Adjusted Leverage

Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required ratio

 

 

1.05

 

 

 

1.20

 

 

 

5.50

 

March 31, 2016 actual

 

 

1.16

 

 

 

1.75

 

 

 

4.21

 

 
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)

 

 

 

 

 

 

 

 

 

$

2.5

 

 

 

7.100%

 

 

one-month LIBOR + 1.50%

 

July 10, 2017

$

7.8

 

 

 

4.655%

 

 

one-month LIBOR

 

December 10, 2017

$

6.9

 

(2)

 

6.860%

 

 

one-month LIBOR + 1.25%

 

August 1, 2017

$

6.1

 

(2)

 

6.410%

 

 

one-month LIBOR + 1.25%

 

September 12, 2017

$

100.0

 

 

 

2.065%

 

 

one-month LIBOR

 

June 30, 2017

$

100.0

 

 

 

2.015%

 

 

one-month LIBOR

 

June 30, 2017

$

200.0

 

 

 

0.788%

 

 

one-month LIBOR

 

July 1, 2016

$

50.0

 

(3)

 

1.320%

 

 

one-month LIBOR

 

July 1, 2017

$

250.0

 

(4)

 

1.887%

 

 

one-month LIBOR

 

June 30, 2018

$

25.0

 

(3)

 

2.080%

 

 

one-month LIBOR

 

July 1, 2017

$

100.0

 

 

 

1.560%

 

 

one-month LIBOR

 

July 1, 2017

$

125.0

 

(3)

 

1.303%

 

 

one-month LIBOR

 

July 1, 2017

$

125.0

 

(5)

 

1.900%

 

 

one-month LIBOR

 

July 1, 2018

$

50.0

 

(6)

 

2.320%

 

 

one-month LIBOR

 

July 1, 2019

$

200.0

 

(6)

 

2.313%

 

 

one-month LIBOR

 

July 1, 2019

 

(1)

The one-month LIBOR rate was approximately 0.437% at March 31, 2016.

(2)

Changes in fair value are recorded through earnings.    

(3)

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

(4)

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

(5)

The effective date of this forward-starting swap is July 1, 2017.

(6)

The effective date of these forward-starting swaps is July 2, 2018.