Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt (Tables)

v3.3.0.814
Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Long-Term Debt

Long-term debt consists of the following:

 

 

 

September 30, 2015

 

 

December 31, 2014

 

 

 

(In thousands)

 

2014 Revolving Credit Facility (1)

 

$

3,246

 

 

$

-

 

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%)

 

 

1,689

 

 

 

4,367

 

Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%

 

 

170,621

 

 

 

147,554

 

Mortgage notes to finance companies-variable rate, bearing interest at 1.25 to 3.50

   percentage points above one-month LIBOR

 

 

148,954

 

 

 

118,368

 

Net debt discount and premium (2)

 

 

(1,633

)

 

 

(1,761

)

Other

 

 

4,705

 

 

 

4,884

 

Total debt

 

$

827,582

 

 

$

773,412

 

Less current maturities

 

 

(31,711

)

 

 

(30,802

)

Long-term debt

 

$

795,871

 

 

$

742,610

 

 

(1)

The interest on the 2014 Revolving Credit Facility was 2.25% above LIBOR at September 30, 2015 and December 31, 2014.

(2)

September 30, 2015 includes a $1.3 million discount associated with the 7.0% Notes and a $0.3 million discount associated with mortgage notes payable. December 31, 2014 includes a $1.5 million discount associated with the 7.0% Notes, a $0.1 million premium associated with notes payable to a finance company and a $0.4 million discount associated with mortgage notes payable.

 
Financial Covenants Include Required Specified Ratios

Sonic was in compliance with the covenants under the 2014 Credit Facilities as of September 30, 2015. Financial covenants include required specified ratios (as each is defined in the 2014 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, 2015 actual

 

 

1.20

 

 

 

1.78

 

 

 

4.13

 

 
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)

 

 

 

 

 

 

 

 

 

$

2.6

 

 

 

7.100%

 

 

one-month LIBOR + 1.50%

 

July 10, 2017

$

8.1

 

 

 

4.655%

 

 

one-month LIBOR

 

December 10, 2017

$

7.1

 

(2)

 

6.860%

 

 

one-month LIBOR + 1.25%

 

August 1, 2017

$

6.2

 

(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

$

200.0

 

 

 

0.788%

 

 

one-month LIBOR

 

July 1, 2016

$

50.0

 

(3)

 

1.320%

 

 

one-month LIBOR

 

July 1, 2017

$

250.0

 

(4)

 

1.887%

 

 

one-month LIBOR

 

June 30, 2018

$

25.0

 

(3)

 

2.080%

 

 

one-month LIBOR

 

July 1, 2017

$

100.0

 

 

 

1.560%

 

 

one-month LIBOR

 

July 1, 2017

$

125.0

 

(3)

 

1.303%

 

 

one-month LIBOR

 

July 1, 2017

$

125.0

 

(5)

 

1.900%

 

 

one-month LIBOR

 

July 1, 2018

$

50.0

 

(6)

 

2.320%

 

 

one-month LIBOR

 

July 1, 2019

$

200.0

 

(6)

 

2.313%

 

 

one-month LIBOR

 

July 1, 2019

 

(1)

The one-month LIBOR rate was approximately 0.193% at September 30, 2015.

(2)

Changes in fair value are recorded through earnings.    

(3)

The effective date of these forward-starting swaps is July 1, 2016.

(4)

The effective date of this forward-starting swap is July 3, 2017.

(5)

The effective date of this forward-starting swap is July 1, 2017.

(6)

The effective date of these forward-starting swaps is July 2, 2018.