Frontier Airlines 2008 Annual Report Download - page 75

7. ACCRUED LIABILITIES
Accrued liabilities consist of the following as of December 31:
2008 2007
Accrued wages, benefits and related taxes $ 14,971 $ 16,061
Accrued maintenance 29,823 28,244
Accrued property taxes 9,250 5,706
Accrued interest payable 19,054 13,661
Accrued liabilities to Partners 9,506 9,766
Deferred revenue 16,495 11,422
Accrued aircraft rent 106 2,747
Accrued landing fees 5,592 7,079
Accrued pilot training 930 4,582
Accrued aircraft return costs 7,266 —
Other 13,749 10,524
Total accrued liabilities $ 126,742 $ 109,792
8. DEBT
Debt consists of the following as of December 31:
2008 2007
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 2.73% to 8.49% with semi-annual principal and
interest payments totaling $135,054 through 2023. 2,277,845 1,913,580
Total debt 2,277,845 1,913,580
Current portion (including debt related to assets held for sale) 196,301 131,700
Long term debt, less current portion $ 2,081,544 $ 1,781,880
The Company has outstanding letters of credit totaling $12,328 and $12,550 as of December 31, 2008 and 2007, 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, 2008. The credit facility limits the Company’s ability to incur indebtedness or create or incur liens on its assets. The
Company is currently negotiating with the bank on replacing the existing facility. If the Company is unable to renew the existing
facility or secure a new facility with a bank, it may require the Company to cash collateralize its outstanding letters of credit.
Future maturities of debt are payable, or expect to be payable as assets held for sale are sold, as follows for the years ending
December 31:
2009 $ 196,301
2010 141,216
2011 150,017
2012 159,378
2013 194,831
Thereafter 1,436,102
Total $ 2,277,845
During the year ended December 31, 2008, the Company acquired 26 aircraft through debt financing totaling approximately
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠