|
Long-Term Debt (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Long-Term Debt |
Long-term debt
consists of the following:
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
|
December 31, 2012 |
|
| |
|
(In
thousands) |
|
|
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%)
|
|
|
7,629 |
|
|
|
10,572 |
|
|
Mortgage notes to finance
companies-fixed rate, bearing interest from 3.51% to
7.03%
|
|
|
157,571 |
|
|
|
137,791 |
|
|
Mortgage notes to finance
companies-variable rate, bearing interest at 1.25 to 3.50
percentage points above one-month LIBOR
|
|
|
79,893 |
|
|
|
62,229 |
|
|
Net debt discount and
premium(2)
|
|
|
(1,800 |
) |
|
|
(2,814 |
) |
|
Other
|
|
|
5,080 |
|
|
|
5,431 |
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$ |
748,373 |
|
|
$ |
629,385 |
|
|
Less current
maturities
|
|
|
(18,216 |
) |
|
|
(18,587 |
) |
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
$ |
730,157 |
|
|
$ |
610,798 |
|
|
|
|
|
|
|
|
|
|
| (1) |
The interest rate on the
revolving credit facility was 2.00% above LIBOR at
December 31, 2013 and 2.25% above LIBOR at December 31,
2012. |
| (2) |
December 31, 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. |
|
| Future Maturities of Long Term-Debt |
Future
maturities of long-term debt are as follows:
|
|
|
|
|
|
|
|
|
|
Year Ending
December 31,
|
|
Principal |
|
|
Net of
Discount/
Premium |
|
| |
|
(In
thousands) |
|
|
2014
|
|
$ |
18,092 |
|
|
$ |
18,216 |
|
|
2015
|
|
|
28,394 |
|
|
|
28,327 |
|
|
2016
|
|
|
45,959 |
|
|
|
45,831 |
|
|
2017
|
|
|
32,299 |
|
|
|
32,156 |
|
|
2018
|
|
|
44,554 |
|
|
|
44,554 |
|
|
Thereafter
|
|
|
580,875 |
|
|
|
579,289 |
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
750,173 |
|
|
$ |
748,373 |
|
|
|
|
|
|
|
|
|
|
|
| Financial Covenants Include Required Specified Ratios |
Sonic was in
compliance with the covenants under the 2011 Credit Facilities as
of December 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 |
|
|
December 31, 2013
actual
|
|
|
1.16 |
|
|
|
1.83 |
|
|
|
3.96 |
|
|
| 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 |
|
$ 9.3
|
|
4.655% |
|
one-month LIBOR |
|
December 10,
2017 |
|
$ 7.8(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 0.168% at December 31, 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. |
|
|
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 |
% |
|