Long-Term Debt and Commercial Paper

12 Months Ended

Dec. 31, 2018

LONG-TERM DEBT AND COMMERCIAL PAPER

Long-term debt at December 31 consisted of the following:



Debt Description	Maturity Date	Interest Payable	2018			2017
6.75% Senior Notes	April 15, 2018	April 15 and October 15	$	—		$	400.0
5.5% Senior Notes	February 1, 2020	February 1 and August 1	350.0			350.0
3.35% Senior Notes	January 15, 2021	January 15 and July 15	300.0			300.0
3.5% Senior Notes	November 15, 2024	May 15 and November 15	450.0			450.0
4.5% Senior Notes	October 1, 2025	April 1 and October 1	450.0			450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	300.0			300.0
Revolving credit facility	October 19, 2022	Monthly	—			—
Capital leases and other debt	Various dates through 2038	Monthly	133.1			139.4
			1,983.1			2,389.4
Less: unamortized debt discounts and debt issuance costs			(12.6		)	(15.7		)
Less: current maturities			(44.3		)	(414.5		)
Long-term debt, net of current maturities			$	1,926.2		$	1,959.2

At December 31, 2018, aggregate maturities of non-vehicle long-term debt were as follows:



Year Ending December 31:
2019	$	44.3
2020	354.8
2021	304.7
2022	4.6
2023	4.8
Thereafter	1,269.9
	$	1,983.1

Senior Unsecured Notes and Credit Agreement

The interest rates payable on the 3.35% Senior Notes, 3.5% Senior Notes, 4.5% Senior Notes, and 3.8% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. In April 2018, we repaid the outstanding $400.0 million of 6.75% Senior Notes.

Under our credit agreement, we have a $1.8 billion revolving credit facility as well as an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit, which was $41.8 million at December 31, 2018, leaving an additional borrowing capacity under the revolving credit facility of $1.8 billion at December 31, 2018. As of December 31, 2018, this borrowing capacity was limited under the maximum consolidated leverage ratio contained in our credit agreement to $588.0 million.

Our revolving credit facility provides for a commitment fee on undrawn amounts ranging from 0.150% to 0.25% and interest on borrowings at LIBOR or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.25% to 1.625% for LIBOR borrowings and 0.25% to 0.625% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0x but less than 3.25x to greater than or equal to 3.25x would result in a 12.5 basis point increase in the applicable margin.

Our senior unsecured notes and borrowings under our credit agreement are guaranteed by substantially all of our subsidiaries. Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations, the guarantees of its subsidiaries are full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries are minor.

Other Long-Term Debt

At December 31, 2018, we had capital lease and other debt obligations of $133.1 million, which are due at various dates through 2038. See Note 18 of the Notes to Consolidated Financial Statements for more information related to capital lease obligations.

Commercial Paper

We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.0 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. The commercial paper notes are guaranteed by substantially all of our subsidiaries. Proceeds from the issuance of commercial paper notes are used to repay borrowings

under the revolving credit facility, to finance acquisitions and for working capital, capital expenditures, share repurchases and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes.

At December 31, 2018, we had $630.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 3.22% and a weighted-average remaining term of 21 days. At December 31, 2017, we had $330.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 1.97% and a weighted-average remaining term of 24 days.