|
Long-Term Debt (Tables)
|
3 Months Ended |
|
Mar. 31, 2013
|
| Long-term debt |
|
| Long-term debt |
Long-term debt consists of the following:
| |
|
|
|
|
|
|
|
|
| (In thousands) |
|
March 31, 2013 |
|
|
December 31, 2012 |
|
| |
|
|
|
2011 Revolving Credit Facility (1)
|
|
$ |
— |
|
|
$ |
6,176 |
|
|
9.0% Senior Subordinated Notes due 2018 (the “9.0% Notes”)
|
|
|
210,000 |
|
|
|
210,000 |
|
|
7.0% Senior Subordinated Notes due 2022 (the “7.0% Notes”)
|
|
|
200,000 |
|
|
|
200,000 |
|
|
Notes payable to a finance company bearing interest from 9.52% to 10.52% (with a weighted average of 10.19%)
|
|
|
9,861 |
|
|
|
10,572 |
|
|
Mortgage notes to finance companies-fixed rate, bearing interest from 4.07% to 7.03%
|
|
|
136,328 |
|
|
|
137,791 |
|
|
Mortgage notes to finance companies-variable rate, bearing interest at 1.25 to 3.50 percentage points above one-month
LIBOR
|
|
|
80,574 |
|
|
|
62,229 |
|
|
Net debt discount and premium (2)
|
|
|
(2,812 |
) |
|
|
(2,814 |
) |
|
Other
|
|
|
5,346 |
|
|
|
5,431 |
|
| |
|
|
|
|
|
|
|
|
|
Total debt
|
|
$ |
639,297 |
|
|
$ |
629,385 |
|
|
Less current maturities
|
|
|
(19,555 |
) |
|
|
(18,587 |
) |
| |
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
$ |
619,742 |
|
|
$ |
610,798 |
|
| |
|
|
|
|
|
|
|
|
| (1) |
The interest rate on the revolving credit facility was 2.00% above LIBOR at March 31, 2013 and 2.25% above LIBOR at December 31, 2012.
|
| (2) |
March 31, 2013 includes $1.0 million discount associated with the 9.0% Notes, $1.7 million discount associated with the 7.0% Notes, $0.6 million premium associated
with notes payable to a finance company and $0.7 million discount associated with mortgage notes payable. December 31, 2012 includes $1.1 million discount associated with the 9.0% Notes, $1.7 million discount associated with the 7.0% Notes,
$0.7 million premium associated with notes payable to a finance company and $0.7 million discount associated with mortgage notes payable. |
|
| Financial covenants include required specified ratios |
Sonic was in compliance with the covenants under the 2011 Credit Facilities as of
March 31, 2013. Financial covenants include required specified ratios (as each is defined in the 2011 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 |
|
|
|
5.50 |
|
| |
|
|
|
|
March 31, 2013 actual
|
|
|
1.12 |
|
|
|
1.68 |
|
|
|
3.90 |
|
|
| 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) |
|
|
|
|
|
|
|
|
| $ |
3.1 |
|
|
|
7.100 |
% |
|
one-month LIBOR + 1.50% |
|
July 10, 2017 |
| $ |
9.8 |
|
|
|
4.655 |
% |
|
one-month LIBOR |
|
December 10, 2017 |
| $ |
8.0 |
(2) |
|
|
6.860 |
% |
|
one-month LIBOR + 1.25% |
|
August 1, 2017 |
| $ |
6.0 |
|
|
|
4.330 |
% |
|
one-month LIBOR |
|
July 1, 2013 |
| $ |
100.0 |
|
|
|
3.280 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
100.0 |
|
|
|
3.300 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
6.8 |
(2) |
|
|
6.410 |
% |
|
one-month LIBOR + 1.25% |
|
September 12, 2017 |
| $ |
50.0 |
|
|
|
2.767 |
% |
|
one-month LIBOR |
|
July 1, 2014 |
| $ |
50.0 |
|
|
|
3.240 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
50.0 |
|
|
|
2.610 |
% |
|
one-month LIBOR |
|
July 1, 2014 |
| $ |
50.0 |
|
|
|
3.070 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
100.0 |
(3) |
|
|
2.065 |
% |
|
one-month LIBOR |
|
June 30, 2017 |
| $ |
100.0 |
(3) |
|
|
2.015 |
% |
|
one-month LIBOR |
|
June 30, 2017 |
| (1) |
The one-month LIBOR rate was 0.204% at March 31, 2013. |
| (2) |
Changes in fair value are recorded through earnings. |
| (3) |
The effective date of these forward-starting swaps is July 1, 2015. |
|
|
9.0% Senior Subordinated Notes due 2018 [Member]
|
|
| Long-term debt |
|
| Redemption price, percentage |
Sonic may redeem the 9.0% Notes in whole or in part at any time after March 15, 2014 at the following redemption prices, which are expressed as percentages of the principal amount:
| |
|
|
|
|
| |
|
Redemption
Price |
|
|
Beginning on March 15, 2014
|
|
|
104.50 |
% |
|
Beginning on March 15, 2015
|
|
|
102.25 |
% |
|
Beginning on March 15, 2016 and thereafter
|
|
|
100.00 |
% |
|
|
7.0% Senior Subordinated Notes due 2022 [Member]
|
|
| Long-term debt |
|
| Redemption price, percentage |
Sonic may redeem the 7.0% Notes in whole or in part at any time after July 15, 2017 at the following redemption prices, which are expressed as percentages of the principal amount:
| |
|
|
|
|
| |
|
Redemption
Price |
|
|
Beginning on July 15, 2017
|
|
|
103.500 |
% |
|
Beginning on July 15, 2018
|
|
|
102.333 |
% |
|
Beginning on July 15, 2019
|
|
|
101.167 |
% |
|
Beginning on July 15, 2020 and thereafter
|
|
|
100.000 |
% |
|