|
Long-Term Debt (Tables)
|
9 Months Ended |
|
Sep. 30, 2013
|
| Long-Term Debt |
Long-term debt consists of the following:
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
September 30, 2013 |
|
|
December 31, 2012 |
|
|
|
|
|
2011 Revolving Credit Facility (1)
|
|
$ |
— |
|
|
$ |
6,176 |
|
|
9.0% Senior Subordinated Notes due 2018 (the “9.0%
Notes”)
|
|
|
— |
|
|
|
210,000 |
|
|
7.0% Senior Subordinated Notes due 2022 (the “7.0%
Notes”)
|
|
|
200,000 |
|
|
|
200,000 |
|
|
5.0% Senior Subordinated Notes due 2023 (the “5.0%
Notes”)
|
|
|
300,000 |
|
|
|
— |
|
|
Notes payable to a finance company bearing interest from 9.52% to
10.52% (with a weighted average of 10.19%)
|
|
|
8,394 |
|
|
|
10,572 |
|
|
Mortgage notes to finance companies-fixed rate, bearing interest
from 3.51% to 7.03%
|
|
|
159,336 |
|
|
|
137,791 |
|
|
Mortgage notes to finance companies-variable rate, bearing interest
at 1.25 to 3.50 percentage points above one-month LIBOR
|
|
|
81,004 |
|
|
|
62,229 |
|
|
Net debt discount and premium (2)
|
|
|
(1,827 |
) |
|
|
(2,814 |
) |
|
Other
|
|
|
5,167 |
|
|
|
5,431 |
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$ |
752,074 |
|
|
$ |
629,385 |
|
|
Less current maturities
|
|
|
(18,010 |
) |
|
|
(18,587 |
) |
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
$ |
734,064 |
|
|
$ |
610,798 |
|
|
|
|
|
|
|
|
|
|
| (1) |
The interest rate on the revolving
credit facility was 2.25% above LIBOR at September 30, 2013
and 2.25% above LIBOR at December 31, 2012. |
| (2) |
September 30, 2013 includes $1.6
million discount associated with the 7.0% Notes, $0.4 million
premium associated with notes payable to a finance company and $0.6
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 |
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 |
|
|
|
|
|
|
September 30, 2013 actual
|
|
|
1.16 |
|
|
|
1.74 |
|
|
|
4.07 |
|
|
| 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)
|
|
|
|
|
|
|
|
|
| $ |
3.0 |
|
|
|
7.100 |
% |
|
one-month LIBOR + 1.50% |
|
July 10, 2017 |
| $ |
9.5 |
|
|
|
4.655 |
% |
|
one-month LIBOR |
|
December 10, 2017 |
| $ |
7.9 |
(2) |
|
|
6.860 |
% |
|
one-month LIBOR + 1.25% |
|
August 1, 2017 |
| $ |
100.0 |
|
|
|
3.280 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
100.0 |
|
|
|
3.300 |
% |
|
one-month LIBOR |
|
July 1, 2015 |
| $ |
6.7 |
(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 |
| $ |
200.0 |
(3) |
|
|
0.788 |
% |
|
one-month LIBOR |
|
July 1, 2016 |
| $ |
50.0 |
(4) |
|
|
1.320 |
% |
|
one-month LIBOR |
|
July 1, 2017 |
| $ |
250.0 |
(5) |
|
|
1.887 |
% |
|
one-month LIBOR |
|
June 30, 2018 |
| (1) |
The one-month LIBOR rate was 0.179%
at September 30, 2013. |
| (2) |
Changes in fair value are recorded
through earnings. |
| (3) |
The effective date of these
forward-starting swaps is July 1, 2015. |
| (4) |
The effective date of this
forward-starting swap is July 1, 2016. |
| (5) |
The effective date of this
forward-starting swap is July 3, 2017. |
|
|
5.0% Senior Subordinated Notes due 2023 [Member]
|
|
| Redemption Price, Percentage |
Sonic may redeem the 5.0% Notes in whole or in part at any time
after May 15, 2018 at the following redemption prices, which
are expressed as percentages of the principal amount:
|
|
|
|
|
| |
|
Redemption
Price |
|
|
Beginning on May 15, 2018
|
|
|
102.500 |
% |
|
Beginning on May 15, 2019
|
|
|
101.667 |
% |
|
Beginning on May 15, 2020
|
|
|
100.833 |
% |
|
Beginning on May 15, 2021 and thereafter
|
|
|
100.000 |
% |
|
|
7.0% Senior Subordinated Notes due 2022 [Member]
|
|
| 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 |
% |
|