Airtran 2007 Annual Report Download - page 61

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55
55
Note 5 – Long-term Debt
The components of long-term debt were (in thousands):
Decembe
r
31
,
2007 2006
B737 Aircraft Purchase Financing Facilities:
Floating rate aircraft notes payable due through 2019, 6.52% weighted-average interest
rate .........................................................................................................................
.
$ 688,427 $ 428,681
Fixed rate aircraft notes payable due through 2018, 7.02% weighted-average interest
rate .........................................................................................................................
.
68,724 76,069
7.00% convertible notes due 2023 ........................................................................................
.
125,000 125,000
Aircraft notes payable through 2017, 10.21% weighted-average interest rat
e
.........................
.
86,270 97,322
Floating rate aircraft pre-delivery deposit financings payable through 2010, 7.04% weighted-
average interest rate .........................................................................................................
.
76,517 70,183
Total long-term debt.............................................................................................................
.
1,044,938 797,255
Less current maturities .........................................................................................................
.
(98,635) (85,969)
$ 946,303 $ 711,286
Maturities of long-term debt for the next five years and thereafter, in aggregate, are (in thousands): 2008-$98,635; 2009-
$83,329; 2010-$57,504; 2011-$61,374; 2012-$57,735; thereafter-$686,361.
As of December 31, 2007, the aggregate net book value of assets (primarily flight equipment) which serves as collateral for
outstanding debt was $1.06 billion. Additionally we have pledged our pre-delivery deposits as collateral for outstanding debt.
Aircraft Purchase Financing Facilities
Through December 31, 2007, we have entered into seven separate aircraft purchase financing facilities for purposes of
financing the acquisition of B737 aircraft on order with the aircraft manufacturer.
Six of the facilities are floating rate facilities. As of December 31, 2007, 25 B737 aircraft had been financed under these
facilities. Each note is secured by a first mortgage on the aircraft to which it relates. The equipment notes bear interest at a
floating rate per annum above the three or six-month U.S. Dollar London Interbank Offering rate (LIBOR) in effect at the
commencement of each semi-annual or three month period, as applicable. Payments of principal and interest under the notes
are payable semi-annually or every three months, as applicable. Commencing after the third anniversary date of each note,
AirTran has the right to prepay the remaining debt outstanding without penalty. The notes mature in years 2016 to 2019. As
of December 31, 2007, $269.5 million of additional debt financing was available to finance nine future B737 aircraft
deliveries.
One of the facilities is a fixed rate facility. As of December 31, 2007, three B737 aircraft had been financed under the facility.
Each note is secured by a first mortgage on the aircraft to which it relates. The equipment notes bear interest at an average
fixed rate of 7.02 percent. Payments of principal and interest under the notes are payable semi-annually. Commencing after
the third anniversary date of each note, AirTran has the right to prepay the remaining debt outstanding without penalty. The
notes mature in years 2016 to 2018.