Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consists of the following:

	March 31, 2016			December 31, 2015
	(In thousands)
2014 Revolving Credit Facility (1)	$	3,690		$	4,203
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
Mortgage notes to finance companies-fixed rate, bearing interest from 3.51% to 7.03%		183,885			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		165,014			150,961
Net debt discount and premium (2)		(1,489	)		(1,562	)
Debt issuance costs		(12,414	)		(12,884	)
Other		5,058			5,454
Total debt	$	843,744		$	814,582
Less current maturities		(26,679	)		(33,437	)
Long-term debt	$	817,065		$	781,145

(1) The interest on the 2014 Revolving Credit Facility was 2.25% above LIBOR at March 31, 2016 and December 31, 2015.

(2) March 31, 2016 includes a $1.3 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.

Financial Covenants Include Required Specified Ratios

Sonic was in compliance with the covenants under the 2014 Credit Facilities as of March 31, 2016. 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
March 31, 2016 actual		1.16		1.75		4.21

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)
$	2.5			7.100%	one-month LIBOR + 1.50%	July 10, 2017
$	7.8			4.655%	one-month LIBOR	December 10, 2017
$	6.9	(2)		6.860%	one-month LIBOR + 1.25%	August 1, 2017
$	6.1	(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 0.437% at March 31, 2016.

(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.