Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v2.4.0.8
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