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5. Accrued Liabilities
December 31,
(In thousands) 1999 1998
Accrued maintenance $24,278 $15,541
Accrued interest 9,447 5,508
Accrued salaries, wages and benefits 8,961 4,931
Deferred gain 6,300 —
Accrued federal excise taxes 2,176 3,042
Other 6,294 15,486
$57,456 $44,508
6. Long-Term Debt
December 31,
(In thousands) 1999 1998
Aircraft notes payable through 2017,
10.63% weighted average interest rate $178,850 $—
Senior notes due April 2001,
10.25% interest rate 150,000 150,000
Senior secured notes due April 2001,
10.50% interest rate 80,000 80,000
Promissory notes for aircraft and other equipment payable
through 2002, 5.85% to 11.7% interest rates 6,838 15,994
415,688 245,994
Less current maturities (19,569) (8,929)
$396,119 $237,065
The Company completed a private placement of $178,850,000, enhanced equip-
ment trust certificates (EETCs) on November 3, 1999. The proceeds have been and
will be used to purchase the first ten B717 aircraft, which will serve as collateral
for the EETCs. Unexpended proceeds from the EETC issue, $39,232,000 at
December 31, 1999, are presented as a non-current asset in the balance sheet.
The promissory notes relate primarily to aircraft financing and bear interest at rates
ranging from 5.85% to 11.67% per annum, and principal and interest payments are
due in monthly or quarterly installments over four to seven year terms on a mortgage-
style amortization based on the delivery date of the aircraft. One of these notes, with
an aggregate unpaid principal balance of approximately $1,200,000 at December 31,
1999, has a variable rate of interest based on the London Interbank Offered Rate
(“LIBOR”) (5.82% at December 31, 1999), plus a range of 1.50% to 3.73%.
Certain aircraft, engines, computer and telephone equipment with a book value
totaling approximately $218,028,000 serve as collateral on the Senior Secured
Notes, EETC and promissory notes.
Future long-term debt principal payments at December 31, 1999, are as follows
(in thousands):
2000 $ 19,569
2001 232,158
2002 7,523
2003 4,643
2004 6,142
Thereafter 145,653
$415,688