AutoNation 2015 Annual Report Download - page 75

Table of Contents
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At December 31, 2015, aggregate maturities of non-vehicle long-term debt were as follows:
Year Ending December 31:
2016 $ 13.4
2017 178.4
2018 401.3
2019 42.2
2020 352.5
Thereafter 779.3
$ 1,767.1
Senior Unsecured Notes and Credit Agreement
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 aggregate principal amount 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.
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 our 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 under the revolving credit facility of $1.8 billion at December 31, 2015. As of December 31, 2015, this
borrowing capacity was limited under the maximum consolidated leverage ratio contained in our credit agreement to $1.5 billion.
Our revolving credit facility provides for a commitment fee on undrawn amounts ranging from 0.175% 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 interest rate.
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