Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.10.0.1
Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Long-Term Debt
Long-term debt consists of the following:
September 30, 2018  December 31, 2017 
(In thousands) 
2016 Revolving Credit Facility (1) $ 13,526  $ 75,000 
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  250,000 
Mortgage notes to finance companies - fixed rate, bearing interest from 3.51% to 7.03%  226,548  199,972 
Mortgage notes to finance companies - variable rate, bearing interest at 1.50 to 2.90 percentage points above one-month or three-month LIBOR  183,499  219,719 
Debt issuance costs  (11,528) (13,208)
Other  39,311  3,947 
Total debt  $ 990,629  $ 1,024,703 
Less current maturities  (33,110) (61,314)
Long-term debt  $ 957,519  $ 963,389 
(1)  The interest rate on the 2016 Revolving Credit Facility (as defined below) was 250 and 225 basis points above the London Interbank Offer Rate (“LIBOR”) at September 30, 2018 and December 31, 2017, respectively.
Financial Covenants Include Required Specified Ratios
Sonic was in compliance with the covenants under the 2016 Credit Facilities as of September 30, 2018. 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, 2018 actual  1.13  1.45  5.11 
Summary of Interest Received and Paid under Term of Cash Flow Swap
Under the terms of the interest rate cap agreements, Sonic will receive and pay interest based on the following:
Notional
Amount 		 Pay Rate (1)  Receive Rate (2)  Start Date   End Date 
(In millions) 
$ 250.0  2.000%    one-month LIBOR  September 1, 2017 June 30, 2018
$ 375.0  2.000%    one-month LIBOR  July 1, 2018 June 30, 2019
$ 375.0  3.000%    one-month LIBOR  July 1, 2018 June 30, 2019
$ 312.5  2.000%    one-month LIBOR  July 1, 2019 June 30, 2020
$ 250.0  3.000%    one-month LIBOR  July 1, 2019 June 30, 2020
$ 225.0  3.000%    one-month LIBOR  July 1, 2020 June 30, 2021
$ 150.0  2.000%    one-month LIBOR  July 1, 2020 July 1, 2021
$ 250.0  3.000%    one-month LIBOR  July 1, 2021 July 1, 2022
(1)  Under these interest rate cap agreements, no payment to or from the counterparty will occur unless the stated receive rate exceeds the stated pay rate, in which case a net payment to Sonic from the counterparty based on the spread between the receive rate and the pay rate will be recognized as a reduction of interest expense, other, net in the accompanying condensed consolidated statements of income.
(2) The one-month LIBOR rate was approximately 2.261% at September 30, 2018.