AutoNation 2001 Annual Report Download - page 62

Notes payable and long-term debt at December 31 are as follows:
2001 2000
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$450.0 million, 9% senior unsecured notes; due August 1,
2008, net of unamortized discount of $5.5 million......... $444.5 $ --
Revolving credit facilities; LIBOR-based interest rates
(4.1% and 7.6% at December 31, 2001 and 2000)............. -- 615.0
Other debt; secured by real property, equipment and other
assets; interest ranging 4.0% to 8.0%; maturing through
2011...................................................... 210.7 242.2
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655.2 857.2
Less: current maturities.................................. (7.9) (6.8)
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$647.3 $850.4
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As of December 31, 2000, the Company had a multi-year unsecured revolving
credit facility which provided $1.0 billion of financing and was scheduled to
mature in April 2002 that was repaid in full and terminated on August 10, 2001.
Another unsecured facility provided $500.0 million of capacity and was amended
in 2001 to provide $250.0 million of borrowing capacity until its termination on
June 29, 2001. In August 2001, the Company entered into two new senior secured
revolving credit facilities with an aggregate capacity of $500.0 million. The
364-day revolving credit facility provides borrowing capacity up to $200.0
million at a LIBOR-based interest rate. The five-year facility provides
borrowing capacity up to $300.0 million at a LIBOR-based interest rate. These
revolving credit facilities are secured by a pledge of the capital stock of
certain subsidiaries, which directly or indirectly own substantially all of the
Company's dealerships, and are guaranteed by substantially all of its
subsidiaries. No amounts are drawn on these revolving credit facilities.
In August 2001, the Company sold $450.0 million of 9.0% senior unsecured
notes due August 1, 2008 at a price of 98.731% of face value. The unamortized
discount is being amortized using the effective interest method through
maturity. The senior unsecured notes are guaranteed by substantially all of the
Company's 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.
In June 2001, the Company entered into a mortgage facility with an
automotive manufacturer's captive finance subsidiary with an aggregate capacity
of $150.0 million. At December 31, 2001, the amount outstanding under this
mortgage facility was $115.0 million. The facility has a ten-year term, bears
interest at a LIBOR-based rate and is secured by mortgages on certain of the
Company's dealerships' real property.
In October 2001, the Company entered into a mortgage facility with an
another automotive manufacturer's captive finance subsidiary with an aggregate
capacity of $150.0 million. At December 31, 2001, the amount outstanding under
this mortgage facility was $38.4 million. The facility has a five-year term,
bears interest at a LIBOR-based rate and is secured by mortgages on certain of
the Company's dealerships' real property.
The Company used the net proceeds of the note offering and additional
borrowings under the new mortgage facilities to repay outstanding amounts under
the $1.0 billion revolving credit facility and certain other debt.
The Company's new revolving credit facilities and the indenture for the