Delta Airlines 2014 Annual Report Download - page 81

2014 Extinguishment and Financings
Debt Extinguishment. During 2014, we extinguished $1.6 billion of existing debt under our secured financing arrangements prior to scheduled
maturity. We recorded losses of $268 million in connection with the early extinguishment of these debt obligations. The losses primarily relate to
unamortized debt discounts resulting from fair value adjustments recorded in the 2008 purchase accounting of Northwest Airlines.
Aircraft Financings. During 2014, we entered into financing arrangements to borrow $1.1 billion , which are secured by 34 aircraft, to finance new
aircraft and to refinance a portion of the debt extinguished prior to its maturity. These loans bear interest at a variable rate equal to LIBOR plus a
specified margin and mature between 2018 and 2026 .
Key Financial Covenants
Our credit facilities include affirmative, negative and financial covenants that could restrict our ability to, among other things, make investments,
sell or otherwise dispose of collateral if we are not in compliance with the collateral coverage ratio tests described below, pay dividends or repurchase
stock. We were in compliance with the covenants in our financing agreements at December 31, 2014 .
Availability Under Revolving Credit Facilities
The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2014 :
Future Maturities
The following table summarizes scheduled maturities of our debt at December 31, 2014 :
74
Pacific Facilities 2011 Credit Facilities
Minimum fixed charge coverage ratio
(1)
1.20:1 1.20:1
Minimum unrestricted liquidity
Unrestricted cash and permitted investments n/a $1.0 billion
Unrestricted cash, permitted investments and undrawn revolving credit facilities $2.0 billion $2.0 billion
Minimum collateral coverage ratio
(2)
1.60:1 1.67:1
(3)
(1)
Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense
(including the interest portion of our capitalized lease obligations) and cash aircraft rent expense, for the 12-month period ending as of the last day of each fiscal quarter.
(2)
Defined as the ratio of (a) certain of the collateral that meets specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations.
(3)
Excluding the non-Pacific international routes from the collateral for purposes of the calculation, the required minimum collateral coverage ratio is 0.75:1
.
(in millions)
Revolving Credit Facility
$
1,225
Pacific Revolving Credit Facility
450
Other revolving credit facilities
228
Total availability under revolving credit facilities
$
1,903
Years Ending December 31,
(in millions) Total Secured and Unsecured Debt Amortization of Debt Discount, net
2015
$
1,111
$
(19
)
2016
1,326
(21
)
2017
2,137
(19
)
2018
2,028
(15
)
2019
1,158
(12
)
Thereafter
1,709
(4
)
Total
$
9,469
$
(90
)
$
9,379