Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.8.0.1
Long-Term Debt (Tables)
9 Months Ended
Sep. 30, 2017
Debt Instrument [Line Items]  
Long-Term Debt

 

Long-term debt consists of the following:

 

 

 

September 30, 2017

 

 

December 31, 2016

 

 

 

(In thousands)

 

2016 Revolving Credit Facility (1)

 

$

135,000

 

 

$

-

 

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%

 

 

197,053

 

 

 

176,369

 

Mortgage notes to finance companies-variable rate, bearing interest at 1.50 to 2.90

   percentage points above one-month or three-month LIBOR

 

 

214,132

 

 

 

227,342

 

Net debt discount and premium (2)

 

 

-

 

 

 

(1,258

)

Debt issuance costs

 

 

(13,625

)

 

 

(13,328

)

Other

 

 

4,032

 

 

 

4,280

 

Total debt

 

$

1,075,865

 

 

$

882,678

 

Less current maturities

 

 

(59,475

)

 

 

(43,003

)

Long-term debt

 

$

1,016,390

 

 

$

839,675

 

 

(1)

The interest rate on the 2016 Revolving Credit Facility (as defined below) was 225 basis points above LIBOR for both September 30, 2017 and December 31, 2016.

(2)

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 September 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

 

September 30, 2017 actual

 

 

1.12

 

 

 

1.75

 

 

 

4.84

 

 

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)

 

 

 

 

 

 

 

 

 

$

6.8

 

 

 

4.655%

 

 

one-month LIBOR

 

December 10, 2017

$

250.0

 

 

 

1.887%

 

 

one-month LIBOR

 

June 30, 2018

$

125.0

 

 

 

1.900%

 

 

one-month LIBOR

 

July 1, 2018

$

50.0

 

(2)

 

2.320%

 

 

one-month LIBOR

 

July 1, 2019

$

200.0

 

(2)

 

2.313%

 

 

one-month LIBOR

 

July 1, 2019

$

100.0

 

(3)

 

1.384%

 

 

one-month LIBOR

 

July 1, 2020

$

125.0

 

(2)

 

1.158%

 

 

one-month LIBOR

 

July 1, 2019

$

150.0

 

(3)

 

1.310%

 

 

one-month LIBOR

 

July 1, 2020

$

125.0

 

 

 

1.020%

 

 

one-month LIBOR

 

July 1, 2018

$

62.5

 

(4)

 

2.000%

 

 

one-month LIBOR

 

July 1, 2021

$

62.5

 

(4)

 

2.000%

 

 

one-month LIBOR

 

July 1, 2021

$

62.5

 

(4)

 

2.000%

 

 

one-month LIBOR

 

July 1, 2021

$

62.5

 

(4)

 

2.000%

 

 

one-month LIBOR

 

July 1, 2021

 

(1)

The one-month LIBOR rate was approximately 1.232% at September 30, 2017.

(2)

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

(3)

The effective date of these forward-starting swaps is July 1, 2019.

(4)

The notional amount of these interest rate caps adjusts over the term of the agreement as follows: $62.5 million from September 1, 2017 to June 30, 2018, $93.75 million from July 1, 2018 to June 30, 2019, $78.125 million from July 1, 2019 to June 30, 2020, and $37.5 million from July 1, 2020 to July 1, 2021.

 

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

%