Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.23.3
Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Instrument [Line Items]  
Long-Term Debt
Long-term debt consists of the following:
September 30, 2023 December 31, 2022
(In millions)
2021 Revolving Credit Facility (1) $ —  $ — 
4.625% Senior Notes due 2029 (the “4.625% Notes”) 650.0  650.0 
4.875% Senior Notes due 2031 (the “4.875% Notes”) 500.0  500.0 
2019 Mortgage Facility (2) 315.0  327.0 
Mortgage notes to finance companies - fixed rate, bearing interest from 2.05% to 7.03% 166.3  186.6 
Mortgage notes to finance companies - variable rate, bearing interest at 1.50 to 2.90 percentage points above one-month or three-month LIBOR or SOFR 76.8  116.0 
Subtotal $ 1,708.1  $ 1,779.6 
Debt issuance costs (24.6) (27.9)
Total debt 1,683.5  1,751.7 
Less current maturities (60.4) (79.5)
Long-term debt $ 1,623.1  $ 1,672.2 
(1)The interest rate on the 2021 Revolving Credit Facility (as defined below) was 135 basis points above one-month Term SOFR (as defined below) at September 30, 2023 and 110 basis points above one-month Term SOFR at December 31, 2022.
(2)The interest rate on the 2019 Mortgage Facility (as defined below) was 160 basis points above one-month Term SOFR (as defined below) at September 30, 2023 and 135 basis points above one-month Term SOFR at December 31, 2022.
Financial Covenants Include Required Specified Ratios
Covenants

The 2021 Credit Facilities and the 2019 Mortgage Facility contain certain negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends and other restricted payments, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. The 2021 Credit Facilities and the 2019 Mortgage Facility also contain limitations on our ability to pledge assets to third parties, subject to certain stated exceptions.
We were in compliance with the financial covenants under the 2021 Credit Facilities and the 2019 Mortgage Facility as of September 30, 2023. Financial covenants include required specified ratios (as each is defined in the 2021 Credit Facilities and the 2019 Mortgage Facility) 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, 2023 actual 1.27 1.60 2.87
The 2021 Credit Facilities and the 2019 Mortgage Facility contain events of default, including cross defaults to other material indebtedness, change of control events and other events of default customary for syndicated commercial credit facilities. Upon the future occurrence of an event of default, we could be required to immediately repay all outstanding amounts under the 2021 Credit Facilities and the 2019 Mortgage Facility.
After giving effect to the applicable restrictions on the payment of dividends under our debt agreements, as of September 30, 2023, we had approximately $245.7 million of net income and retained earnings free of such restrictions. We were in compliance with all restrictive covenants under our debt agreements as of September 30, 2023.
In addition, many of our facility leases are governed by a guarantee agreement between the landlord and us that contains financial and operating covenants. The financial covenants under the guarantee agreement are identical to those under the 2021 Credit Facilities and the 2019 Mortgage Facility with the exception of one additional financial covenant related to the ratio of EBITDAR to Rent (as defined in the guarantee agreement) with a required ratio of no less than 1.50 to 1.00. As of September 30, 2023, the ratio was 12.05 to 1.00.