AutoNation 2015 Annual Report Download - page 48

Table of Contents
Long-Term Debt
The following table sets forth our non-vehicle long-term debt as of December 31, 2015 and 2014:
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6.75% Senior Notes due 2018 $ 397.9
$ 397.1
5.5% Senior Notes due 2020 350.0
350.0
3.35% Senior Notes due 2021 300.0
—
4.5% Senior Notes due 2025 448.5
—
Revolving credit facility due 2019 —
1,110.0
Mortgage facility(1) 175.7
185.5
Capital leases and other debt 95.0
85.8
1,767.1
2,128.4
Less: current maturities (13.4)
(25.0)
Long-term debt, net of current maturities $ 1,753.7
$ 2,103.4
(1) The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon
payment of $155.4 million due November 2017.
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On September 21, 2015, we issued $300.0 million aggregate principal amount of 3.35% Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes were
sold at 99.998% of the aggregate principal amount. Interest on the 2021 Notes is payable on January 15 and July 15 of each year. These notes will mature on
January 15, 2021. At December 31, 2015, we had outstanding $300.0 million of 2021 Notes, net of debt discount.
On September 21, 2015, we also issued $450.0 million aggregate principal amount of 4.5% Senior Notes due 2025 (the “2025 Notes”). The 2025 Notes
were sold at 99.663% of the aggregate principal amount. Interest on the 2025 Notes is payable on April 1 and October 1 of each year. These notes will mature
on October 1, 2025. At December 31, 2015, we had outstanding $448.5 million of 2025 Notes, net of debt discount.
The interest rate payable on the 2021 Notes and 2025 Notes is subject to adjustment upon the occurrence of certain credit rating events as provided in the
indentures for these senior unsecured notes. Proceeds from the issuance of these senior unsecured notes were used to reduce borrowings under our revolving
credit facility and for general corporate purposes. In connection with the issuance of the 2021 Notes and 2025 Notes, we incurred $6.4 million in debt
issuance costs that will be amortized to interest expense over the terms of the related debt arrangements.
At December 31, 2015, we had outstanding $397.9 million of 6.75% Senior Notes due 2018, net of debt discount. Interest is payable on April 15 and
October 15 of each year. These notes will mature on April 15, 2018.
At December 31, 2015, we had outstanding $350.0 million of 5.5% Senior Notes due 2020. Interest is payable on February 1 and August 1 of each year.
These notes will mature on February 1, 2020.
Our senior unsecured notes are guaranteed by substantially all of our subsidiaries. The subsidiary guarantees for the 2021 Notes and the 2025 Notes may
be released in certain circumstances as set forth in the indentures for such notes.
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Under our credit agreement, we have a $1.8 billion revolving credit facility that matures on December 3, 2019. The credit agreement also contains 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. As of December 31, 2015, we had no borrowings outstanding under the revolving credit
facility. 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 $44.1 million at December 31,
2015, leaving an additional borrowing capacity
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