Long-Term Debt (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Debt Instrument [Line Items] |
|
| Long-Term Debt |
Long-term debt consists of the following:
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
|
(In thousands)
|
|
|
2014 Revolving Credit Facility (1)
|
|
$
|
-
|
|
|
$
|
4,203
|
|
|
2016 Revolving Credit Facility (2)
|
|
|
-
|
|
|
|
-
|
|
|
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”)
|
|
|
289,273
|
|
|
|
300,000
|
|
|
Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%
|
|
|
176,369
|
|
|
|
168,410
|
|
|
Mortgage notes to finance companies-variable rate, bearing interest at 1.25 to 2.80
percentage points above one-month or three-month LIBOR
|
|
|
227,342
|
|
|
|
150,961
|
|
|
Net debt discount and premium (3)
|
|
|
(1,258
|
)
|
|
|
(1,562
|
)
|
|
Debt issuance costs
|
|
|
(13,328
|
)
|
|
|
(12,884
|
)
|
|
Other
|
|
|
4,280
|
|
|
|
5,454
|
|
|
Total debt
|
|
$
|
882,678
|
|
|
$
|
814,582
|
|
|
Less current maturities
|
|
|
(43,003
|
)
|
|
|
(33,437
|
)
|
|
Long-term debt
|
|
$
|
839,675
|
|
|
$
|
781,145
|
|
|
(1)
|
The interest rate on the 2014 Revolving Credit Facility was 225 basis points above LIBOR at December 31, 2015.
|
|
(2)
|
The interest rate on the 2016 Revolving Credit Facility was 225 basis points above LIBOR at December 31, 2016.
|
|
(3)
|
December 31, 2016 includes a $1.1 million discount associated with the 7.0% Notes and a $0.2 million discount associated with mortgage notes payable.
|
December 31, 2015 includes a $1.3 million discount associated with the 7.0% Notes and a $0.3 million discount associated with mortgage notes payable.
|
| Future Maturities of Long-Term Debt |
Future maturities of long-term debt are as follows:
|
|
|
Principal
|
|
|
Net of
Discount/
Premium
|
|
|
Year Ending December 31,
|
|
(In thousands)
|
|
|
2017
|
|
$
|
43,127
|
|
|
$
|
43,003
|
|
|
2018
|
|
|
55,986
|
|
|
|
55,986
|
|
|
2019
|
|
|
19,605
|
|
|
|
19,605
|
|
|
2020
|
|
|
51,523
|
|
|
|
51,523
|
|
|
2021
|
|
|
45,434
|
|
|
|
45,434
|
|
|
Thereafter
|
|
|
681,589
|
|
|
|
680,455
|
|
|
Total
|
|
$
|
897,264
|
|
|
$
|
896,006
|
|
|
| Financial Covenants Include Required Specified Ratios |
Sonic was in compliance with the covenants under the 2016 Credit Facilities as of December 31, 2016. Financial covenants include required specified ratios (as each is defined in the 2016 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
|
|
|
|
5.75
|
|
|
December 31, 2016 actual
|
|
|
1.17
|
|
|
|
1.92
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
$
|
2.3
|
|
|
|
7.100%
|
|
|
one-month LIBOR + 1.50%
|
|
July 10, 2017
|
|
$
|
7.3
|
|
|
|
4.655%
|
|
|
one-month LIBOR
|
|
December 10, 2017
|
|
$
|
6.6
|
|
(2)
|
|
6.860%
|
|
|
one-month LIBOR + 1.25%
|
|
August 1, 2017
|
|
$
|
6.0
|
|
(2)
|
|
6.410%
|
|
|
one-month LIBOR + 1.25%
|
|
September 12, 2017
|
|
$
|
100.0
|
|
|
|
2.065%
|
|
|
one-month LIBOR
|
|
June 30, 2017
|
|
$
|
100.0
|
|
|
|
2.015%
|
|
|
one-month LIBOR
|
|
June 30, 2017
|
|
$
|
50.0
|
|
|
|
1.320%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
250.0
|
|
(3)
|
|
1.887%
|
|
|
one-month LIBOR
|
|
June 30, 2018
|
|
$
|
25.0
|
|
|
|
2.080%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
100.0
|
|
|
|
1.560%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
125.0
|
|
|
|
1.303%
|
|
|
one-month LIBOR
|
|
July 1, 2017
|
|
$
|
125.0
|
|
(4)
|
|
1.900%
|
|
|
one-month LIBOR
|
|
July 1, 2018
|
|
$
|
50.0
|
|
(5)
|
|
2.320%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
200.0
|
|
(5)
|
|
2.313%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
100.0
|
|
(6)
|
|
1.384%
|
|
|
one-month LIBOR
|
|
July 1, 2020
|
|
$
|
125.0
|
|
(5)
|
|
1.158%
|
|
|
one-month LIBOR
|
|
July 1, 2019
|
|
$
|
150.0
|
|
(6)
|
|
1.310%
|
|
|
one-month LIBOR
|
|
July 1, 2020
|
|
$
|
125.0
|
|
(4)
|
|
1.020%
|
|
|
one-month LIBOR
|
|
July 1, 2018
|
|
(1)
|
The one-month LIBOR rate was approximately 0.772% at December 31, 2016.
|
|
(2)
|
Changes in fair value are recorded through earnings.
|
|
(3)
|
The effective date of this forward-starting swap is July 3, 2017.
|
|
(4)
|
The effective date of these forward-starting swaps is July 1, 2017.
|
|
(5)
|
The effective date of these forward-starting swaps is July 2, 2018.
|
|
(6)
|
The effective date of these forward-starting swaps is July 1, 2019.
|
|
| 7.0% Senior Subordinated Notes Due 2022 [Member] |
|
| Debt Instrument [Line Items] |
|
| Redemption Price, Percentage |
Sonic may redeem the 7.0% Notes in whole or in part at any time on or 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] |
|
| Debt Instrument [Line Items] |
|
| Redemption Price, Percentage |
Sonic may redeem the 5.0% Notes in whole or in part at any time on or 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
|
%
|
|