Frontier Airlines 2007 Annual Report Download - page 76

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5. ACCRUED LIABILITIES
Accrued liabilities consist of the following as of December 31:
2007 2006
Accrued wages, benefits and related taxes $ 16,061 $ 13,966
Accrued maintenance 28,244 23,366
Accrued property taxes 5,706 3,512
Accrued interest payable 13,661 13,470
Accrued liabilities to Partners 9,766 13,935
Current portion of deferred revenue 7,882 —
Accrued aircraft rent 2,747 8,337
Accrued landing fees 7,079 4,407
Accrued pilot training 4,582 1,501
Other 14,064 9,964
Total accrued liabilities $ 109,792 $ 92,458
6. DEBT
Debt consists of the following as of December 31:
2007 2006
Revolving credit facility with Bank of America Business Capital (the “Bank”), maximum of
$15,000 available (including outstanding letters of credit), subject to 30% of the net book value of
spare rotable parts and 15% 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 2.50% 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
March 31, 2009 and is collateralized by all the Company’s assets, excluding the owned aircraft and
engines. $ — $ —
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 totaling $113,353 through 2022. 1,913,580 1,568,803
Total 1,913,580 1,568,803
Current portion (including Bank term loan) 131,700 86,688
Debt and notes payable - less current portion $ 1,781,880 $ 1,482,115
The Company has outstanding letters of credit totaling $12,550 and $10,957 as of December 31, 2007 and 2006, respectively.
The American code-share agreement requires a debt sinking fund for the Company’s required semi-annual payments.
The Company’s revolving credit facility with Bank of America Business Capital has a liquidity covenant, a specified fixed
charge coverage ratio and a debt to earnings leverage ratio covenant. The Company was in compliance with the covenants at
December 31, 2007. The credit facility limits the Company’s ability to incur indebtedness or create or incur liens on its assets.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 21, 2008 Powered by Morningstar® Document Research℠