|
Long-Term Debt (Tables)
|
3 Months Ended |
|
Mar. 31, 2014
|
| Long-Term Debt |
Long-term debt consists of the following:
|
|
|
|
|
|
|
|
|
| |
|
March 31, 2014 |
|
|
December 31, 2013 |
|
| |
|
(In
thousands) |
|
|
2011 Revolving Credit Facility (1)
|
|
$ |
0 |
|
|
$ |
— |
|
|
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 |
|
|
|
300,000 |
|
|
Notes payable to a finance company bearing interest from 9.52% to
10.52% (with a weighted average of 10.19%)
|
|
|
6,843 |
|
|
|
7,629 |
|
|
Mortgage notes to finance companies-fixed rate, bearing interest
from 3.51% to 7.03%
|
|
|
155,763 |
|
|
|
157,571 |
|
|
Mortgage notes to finance companies-variable rate, bearing interest
at 1.25 to 3.50 percentage points above one-month LIBOR
|
|
|
119,141 |
|
|
|
79,893 |
|
|
Net debt discount and premium (2)
|
|
|
(1,804 |
) |
|
|
(1,800 |
) |
|
Other
|
|
|
5,107 |
|
|
|
5,080 |
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$ |
785,050 |
|
|
$ |
748,373 |
|
|
Less current maturities
|
|
|
(20,540 |
) |
|
|
(18,216 |
) |
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
$ |
764,510 |
|
|
$ |
730,157 |
|
|
|
|
|
|
|
|
|
|
| (1) |
The interest rate on the revolving
credit facility was 2.00% above LIBOR at March 31, 2014 and
2.00% above LIBOR at December 31, 2013. |
| (2) |
March 31, 2014 includes $1.6
million discount associated with the 7.0% Notes, $0.3 million
premium associated with notes payable to a finance company and $0.5
million discount associated with mortgage notes payable.
December 31, 2013 includes $ 1.6 million discount
associated with the 7.0% Notes, $0.4 million premium associated
with the notes payable to a finance company and $0.6 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, 2014. Financial covenants include
required specified ratios (as each is defined in the 2011 Credit
Facilities) of:
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|
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| |
|
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, 2014 actual
|
|
|
1.20 |
|
|
|
1.89 |
|
|
|
4.08 |
|
|
| 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)
|
|
|
|
|
|
|
|
|
| $ |
2.9 |
|
|
|
7.100 |
% |
|
one-month LIBOR + 1.50% |
|
July 10, 2017 |
| $ |
9.1 |
|
|
|
4.655 |
% |
|
one-month LIBOR |
|
December 10, 2017 |
| $ |
7.7 |
(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 |
| $ |
6.6 |
(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 0.152%
at March 31, 2014. |
| (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. |
|
|
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 |
% |
|
|
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 |
% |
|