Long-Term Debt (Tables)
|
6 Months Ended |
Jun. 30, 2017 |
|---|
| Debt Instrument [Line Items] |
|
| Long-Term Debt |
Long-term debt consists of the following:
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
|
|
|
|
(In thousands)
|
|
|
2016 Revolving Credit Facility (1)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
7.0% Senior Subordinated Notes due 2022 (the “7.0% Notes”)
|
|
|
-
|
|
|
|
200,000
|
|
|
5.0% Senior Subordinated Notes due 2023 (the “5.0% Notes”)
|
|
|
289,273
|
|
|
|
289,273
|
|
|
6.125% Senior Subordinated Notes due 2027 (the “6.125% Notes”)
|
|
|
250,000
|
|
|
|
-
|
|
|
Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%
|
|
|
199,856
|
|
|
|
176,369
|
|
|
Mortgage notes to finance companies-variable rate, bearing interest at 1.25 to 2.80
percentage points above one-month or three-month LIBOR
|
|
|
225,427
|
|
|
|
227,342
|
|
|
Net debt discount and premium (2)
|
|
|
(58
|
)
|
|
|
(1,258
|
)
|
|
Debt issuance costs
|
|
|
(14,055
|
)
|
|
|
(13,328
|
)
|
|
Other
|
|
|
4,115
|
|
|
|
4,280
|
|
|
Total debt
|
|
$
|
954,558
|
|
|
$
|
882,678
|
|
|
Less current maturities
|
|
|
(67,231
|
)
|
|
|
(43,003
|
)
|
|
Long-term debt
|
|
$
|
887,327
|
|
|
$
|
839,675
|
|
|
(1)
|
The interest rate on the 2016 Revolving Credit Facility (as defined below) was 200 basis points and 225 basis points above LIBOR at June 30, 2017 and December 31, 2016, respectively.
|
|
(2)
|
June 30, 2017 includes a $0.1 million discount associated with mortgage notes payable. December 31, 2016 includes a $1.1 million discount associated with the 7.0% Notes and a $0.2 million discount associated with mortgage notes payable.
|
|
| Financial Covenants Include Required Specified Ratios |
Sonic was in compliance with the covenants under the 2016 Credit Facilities as of June 30, 2017. Financial covenants include required specified ratios (as each is defined in the 2016 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
|
|
|
|
5.75
|
|
|
June 30, 2017 actual
|
|
|
1.14
|
|
|
|
1.95
|
|
|
|
4.38
|
|
|
| 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)
|
|
|
|
|
|
|
|
|
|
|
$
|
2.2
|
|
|
|
7.100%
|
|
|
one-month LIBOR + 1.50%
|
|
July 10, 2017
|
|
$
|
7.0
|
|
|
|
4.655%
|
|
|
one-month LIBOR
|
|
December 10, 2017
|
|
$
|
6.4
|
|
(2)
|
|
6.860%
|
|
|
one-month LIBOR + 1.25%
|
|
August 1, 2017
|
|
$
|
5.9
|
|
(2)
|
|
6.410%
|
|
|
one-month LIBOR + 1.25%
|
|
September 12, 2017
|
|
$
|
50.0
|
|
|
|
1.320%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
250.0
|
|
(3)
|
|
1.887%
|
|
|
one-month LIBOR
|
|
June 30, 2018
|
|
$
|
25.0
|
|
|
|
2.080%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
100.0
|
|
|
|
1.560%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
125.0
|
|
|
|
1.303%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
125.0
|
|
(4)
|
|
1.900%
|
|
|
one-month LIBOR
|
|
July 1, 2018
|
|
$
|
50.0
|
|
(5)
|
|
2.320%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
200.0
|
|
(5)
|
|
2.313%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
100.0
|
|
(6)
|
|
1.384%
|
|
|
one-month LIBOR
|
|
July 1, 2020
|
|
$
|
125.0
|
|
(5)
|
|
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
|
|
July 1, 2018
|
|
(1)
|
The one-month LIBOR rate was approximately 1.224% at June 30, 2017.
|
|
(2)
|
Changes in fair value are recorded through earnings.
|
|
(3)
|
The effective date of this forward-starting swap is July 3, 2017.
|
|
(4)
|
The effective date of these forward-starting swaps is July 1, 2017.
|
|
(5)
|
The effective date of these forward-starting swaps is July 2, 2018.
|
|
(6)
|
The effective date of these forward-starting swaps is July 1, 2019.
|
|
| 6.125% Senior Subordinated Notes due 2027 [Member] |
|
| Debt Instrument [Line Items] |
|
| Redemption Price, Percentage |
Sonic may redeem the 6.125% Notes, in whole or in part, at any time on or after March 15, 2022 at the following redemption prices, which are expressed as percentages of the principal amount:
|
|
|
Redemption
Price
|
|
|
Beginning on March 15, 2022
|
|
|
103.063
|
%
|
|
Beginning on March 15, 2023
|
|
|
102.042
|
%
|
|
Beginning on March 15, 2024
|
|
|
101.021
|
%
|
|
Beginning on March 15, 2025 and thereafter
|
|
|
100.000
|
%
|
|