Frontier Airlines 2004 Annual Report Download - page 58

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6. DEBT
Debt consists of the following as of December 31:
Chautauqua's debt agreements with the Bank contain restrictive covenants that require, among other things, that Chautauqua maintain a certain fixed charge coverage ratio and a debt to
earnings leverage ratio. Chautauqua received a waiver from the lender under the revolving credit facility for non
-
compliance with the debt to earnings leverage ratio for the fourth quarter of 2004.
Chautauqua has outstanding letters of credit totaling $4,782 and $2,438 as of December 31, 2004 and 2003, respectively. The American code
-
share agreement requires a debt sinking fund for
Chautauqua's required semi
-
annual payments.
Future maturities of debt are payable as follows for the years ending December 31:
During the year ended December 31, 2004, the Company acquired 24 aircraft through debt financing totaling $318,456. The debt was obtained from a bank and the aircraft
manufacturer for fifteen year terms at interest rates ranging from 4.31% to 6.85%.
2004
2003
Revolving credit facility with Bank of America Business Capital (the "Bank"), maximum of $25,000 available (including outstanding letters
of credit), subject to 70% of the net book value of spare rotable parts and 40% of the net book value of spare non
-
rotable parts and
inventory. Interest is payable monthly at the Bank's LIBOR rate plus spreads ranging from 2.0% to 2.75% or the Bank's base rate
(which is generally equivalent to the prime rate) plus spreads ranging from 0.25% to 0.75%. The weighted average interest rates for the
years ended December 31, 2004, 2003 and 2002 were 4.2%, 4.5%, and 5.1%, respectively. Fees are payable at 0.375% on the
unused revolver amount. The credit facility expires on March 31, 2006 and is collateralized by all of Chautauqua's assets, excluding the
owned aircraft and engines.
$
$
Term loans with the Bank due March 2006 or upon termination of the Bank credit facility, with monthly principal payments of $54, and
interest payable monthly at the Bank's LIBOR rate plus spreads ranging from 2.0% to 2.75% or the Bank's base rate (which is
generally equivalent to the prime rate) plus spreads ranging from 0.25% to 0.75% (5.3% at December 31, 2004). The term loans are
collateralized by substantially all of Chautauqua's assets, except for aircraft collateralized by various banks and aircraft manufacturer.
3,212
1,336
Promissory notes with various banks and aircraft manufacturer, collateralized by aircraft, bearing interest at fixed rates ranging from
4.01% to 6.85% with semi
-
annual principal and interest payments of $44,349 through 2019.
846,974
460,939
Subordinated note payable to affiliate (repaid in 2004).
20,392
Total
850,186
482,667
Current portion (including Bank term loan)
46,420
45,059
Debt and notes payable
—
Less current portion
$
803,766
$
437,608
2005
$
46,420
2006
45,575
2007
48,075
2008
50,221
2009
52,641
Thereafter
607,254
Total
$
850,186
48