Frontier Airlines 2006 Annual Report Download - page 97

6. DEBT
Debt consists of the following as of December 31:
2006 2005
Revolving credit facility with Bank of America Business Capital (the “Bank”),
maximum of $25,000 available (including outstanding letters of credit), subject to 50%
of the net book value of spare rotable parts and 20% of the net bookvalue of spare
non-rotable parts and inventory. Interest is payable monthly at the bank’s LIBOR rate
plus spreads ranging from 2.50% to 2.75% or the Bank’s base rate (which is generally
equivalent to the prime rate) plus spreads ranging from 0.50% to 0.75%. Fees are
payable at 0.375% on the unused revolver amount. The credit facility expires on May
31, 2007 and is collateralized by all the Company’s assets, excluding the owned aircraft
and engines.
$ — $ —
Term loans with the Bank, repaid in 2006. — 2,624
Promissory notes with various banks and aircraft manufacturer, collateralized by
aircraft, bearing interest at fixed rates ranging from 4.01% to 8.49% with semi-annual
principal and interest payments of $91,565 through 2021. 1,568,803 1,410,700
Other — 116
Total 1,568,803 1,413,440
Current portion (including Bank term loan) 86,688 73,935
Debt and notes payable—less current portion $ 1,482,115 $ 1,339,505
Chautauqua’s debt agreements with the Bank were amended during 2006 to a Republic Airways Holdings Inc. consolidated
agreement. The Company’s debt agreements with the Bank contain restrictive covenants that require, among other things, that the
Company maintain a certain fixed charge coverage ratio and a debt to earnings leverage ratio. The Company was in compliance with
both ratios at December 31, 2006. The Company has outstanding letters of credit totaling $10,957 and $7,462 as of December 31,
2006 and 2005, respectively. The American code-share agreement requires a debt sinking fund for the Company’s required
semi-annual payments.
Future maturities of debt are payable as follows for the years ending December 31:
2007 $ 86,688
2008 91,144
2009 96,451
2010 102,441
2011 108,815
Thereafter 1,083,264
Total $ 1,568,803
During the year ended December 31, 2006, the Company acquired 11 aircraft through debt financing totaling approximately
$194,700. The debt was obtained from banks and the aircraft manufacturer for twelve to fifteen year terms at interest rates ranging
from 4.75% to 7.52%. In addition, during 2006, the Company acquired five previously leased ERJ-145 aircraft from the lessors. Debt
was obtained for approximately $40,500 from a third party lender for a term of ten years at interest rates between 8.46% and 8.49%.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠