Long-Term Debt (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
|---|
| Debt Disclosure [Abstract] |
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| Long-Term Debt |
Long-term debt consists of the following:
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September 30, 2016
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|
|
December 31, 2015
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|
|
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(In thousands)
|
|
|
2014 Revolving Credit Facility (1)
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|
$
|
-
|
|
|
$
|
4,203
|
|
|
7.0% Senior Subordinated Notes due 2022 (the “7.0% Notes”)
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|
|
200,000
|
|
|
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200,000
|
|
|
5.0% Senior Subordinated Notes due 2023 (the “5.0% Notes”) (2)
|
|
|
289,273
|
|
|
|
300,000
|
|
|
Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%
|
|
|
178,910
|
|
|
|
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
|
|
|
226,122
|
|
|
|
150,961
|
|
|
Net debt discount and premium (3)
|
|
|
(1,320
|
)
|
|
|
(1,562
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)
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|
Debt issuance costs
|
|
|
(11,214
|
)
|
|
|
(12,884
|
)
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|
Other
|
|
|
4,364
|
|
|
|
5,454
|
|
|
Total debt
|
|
$
|
886,135
|
|
|
$
|
814,582
|
|
|
Less current maturities
|
|
|
(43,241
|
)
|
|
|
(33,437
|
)
|
|
Long-term debt
|
|
$
|
842,894
|
|
|
$
|
781,145
|
|
|
(1)
|
The interest on the 2014 Revolving Credit Facility was 2.25% above LIBOR at both September 30, 2016 and December 31, 2015.
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|
(2)
|
During the three months ended September 30, 2016, Sonic repurchased approximately $10.7 million of its outstanding 5.0% Notes for approximately $10.6 million in cash, plus accrued and unpaid interest related thereto.
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|
(3)
|
September 30, 2016 includes a $1.2 million discount associated with the 7.0% Notes and a $0.1 million discount associated with mortgage notes payable. December 31, 2015 includes a $1.3 million discount associated with the 7.0% Notes and a $0.3 million discount associated with mortgage notes payable.
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| Financial Covenants Include Required Specified Ratios |
Sonic was in compliance with the covenants under the 2014 Credit Facilities as of September 30, 2016. Financial covenants include required specified ratios (as each is defined in the 2014 Credit Facilities) of:
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Covenant
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Minimum
Consolidated
Liquidity
Ratio
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Minimum
Consolidated
Fixed Charge
Coverage
Ratio
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|
Maximum
Consolidated
Total Lease
Adjusted Leverage
Ratio
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|
|
|
|
|
|
|
|
|
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|
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Required ratio
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1.05
|
|
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1.20
|
|
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|
5.50
|
|
|
September 30, 2016 actual
|
|
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1.16
|
|
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|
1.70
|
|
|
|
4.32
|
|
|
| Summary of Interest Received and Paid under Term of Cash Flow Swap |
Under the terms of these cash flow swaps, Sonic will receive and pay interest based on the following:
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Notional
Amount
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|
Pay
Rate
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|
Receive Rate (1)
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Maturing Date
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(In millions)
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|
|
|
|
|
|
|
|
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$
|
2.3
|
|
|
|
7.100%
|
|
|
one-month LIBOR + 1.50%
|
|
July 10, 2017
|
|
$
|
7.5
|
|
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|
4.655%
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|
|
one-month LIBOR
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December 10, 2017
|
|
$
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6.7
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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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|
$
|
6.0
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|
(2)
|
|
6.410%
|
|
|
one-month LIBOR + 1.25%
|
|
September 12, 2017
|
|
$
|
100.0
|
|
|
|
2.065%
|
|
|
one-month LIBOR
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June 30, 2017
|
|
$
|
100.0
|
|
|
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2.015%
|
|
|
one-month LIBOR
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June 30, 2017
|
|
$
|
50.0
|
|
|
|
1.320%
|
|
|
one-month LIBOR
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|
July 1, 2017
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|
$
|
250.0
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|
(3)
|
|
1.887%
|
|
|
one-month LIBOR
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June 30, 2018
|
|
$
|
25.0
|
|
|
|
2.080%
|
|
|
one-month LIBOR
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July 1, 2017
|
|
$
|
100.0
|
|
|
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1.560%
|
|
|
one-month LIBOR
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July 1, 2017
|
|
$
|
125.0
|
|
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1.303%
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|
|
one-month LIBOR
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July 1, 2017
|
|
$
|
125.0
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|
(4)
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|
1.900%
|
|
|
one-month LIBOR
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|
July 1, 2018
|
|
$
|
50.0
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|
(5)
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|
2.320%
|
|
|
one-month LIBOR
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|
July 1, 2019
|
|
$
|
200.0
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|
(5)
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|
2.313%
|
|
|
one-month LIBOR
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|
July 1, 2019
|
|
$
|
100.0
|
|
(6)
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|
1.384%
|
|
|
one-month LIBOR
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|
July 1, 2020
|
|
$
|
125.0
|
|
(5)
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|
1.158%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
150.0
|
|
(6)
|
|
1.310%
|
|
|
one-month LIBOR
|
|
July 1, 2020
|
|
$
|
125.0
|
|
(4)
|
|
1.020%
|
|
|
one-month LIBOR
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|
July 1, 2018
|
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(1)
|
The one-month LIBOR rate was approximately 0.527% at September 30, 2016.
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(2)
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Changes in fair value are recorded through earnings.
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(3)
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The effective date of this forward-starting swap is July 3, 2017.
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(4)
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The effective date of these forward-starting swaps is July 1, 2017.
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(5)
|
The effective date of these forward-starting swaps is July 2, 2018.
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(6)
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The effective date of these forward-starting swaps is July 1, 2019.
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