JetBlue Airlines 2005 Annual Report Download - page 60

Note 2—Long-term Debt and Short-term Borrowings
Long-term debt and the related weighted average interest rate at December 31, 2005 and 2004
consisted of the following (in millions):
2005 2004
Secured Debt
Floating rate equipment notes, due through 2016 (1) ...... $ 825 6.3%$ 895 4.3%
Floating rate enhanced equipment notes (2)
Class G-1, due through 2016.......................... 287 5.0%119 3.1%
Class G-2, due 2014 and 2016......................... 373 5.2%188 3.4%
Class C, due through 2008............................ 222 8.0%124 6.7%
Other secured debt.................................... 129 6.3%—
Unsecured Debt
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⁄ 4 %convertible debentures due in 2035 (3).............. 250 —
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⁄ 2 %convertible notes due in 2033 (4)................... 175 175
Total debt ............................................ 2,261 1,501
Less: current maturities .............................. (158) (105)
Long-term debt ....................................... $ 2,103 $ 1,396
(1) Interest rates adjust quarterly or semi-annually based on the London Interbank Offered Rate, or
LIBOR, plus a margin.
(2) In November 2004 and March 2004, we completed public offerings of $498 million and
$431 million, respectively, of pass-through certificates, to finance the purchase of 28 new Airbus
A320 aircraft delivered through 2005. Separate trusts were established for each class of these
certificates. Principal payments are required on the Class G-1 and Class C certificates quarterly.
The entire principal amount of the Class G-2 certificates is scheduled to be paid in a lump sum on
the applicable maturity dates. The interest rate for all certificates is based on three month LIBOR
plus a margin. Interest is payable quarterly.
(3) In March 2005, we completed a public offering of $250 million aggregate principal amount of
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⁄ 4 %convertible unsecured debentures due 2035, which are currently convertible into 14.6 million
shares of our common stock at a price of approximately $17.10 per share, or 58.4795 shares per
$1,000 principal amount of debentures, subject to further adjustment. Upon conversion, we have
the right to deliver, in lieu of shares of our common stock, cash or a combination of cash and
shares of our common stock. At any time, we may irrevocably elect to satisfy our conversion
obligation with respect to the principal amount of the debentures to be converted with a
combination of cash and shares of our common stock.
At any time on or after March 20, 2010, we may redeem any of the debentures for cash at a
redemption price of 100%of their principal amount, plus accrued and unpaid interest. Holders
may require us to repurchase the debentures for cash at a repurchase price equal to 100%of their
principal amount plus accrued and unpaid interest, if any, on March 15, 2010, 2015, 2020, 2025 and
2030, or at any time prior to their maturity upon the occurrence of a specified designated
event. Interest is payable semi-annually on March 15 and September 15.
(4) In July 2003, we sold $175 million aggregate principal amount of 3
1
⁄ 2 %convertible unsecured
notes due 2033, which are currently convertible into 6.2 million shares of our common stock at a
price of approximately $28.33 per share, or 35.2941 shares per $1,000 principal amount of notes,
subject to further adjustment and certain conditions on conversion. At any time on or after
July 18, 2008, we may redeem the notes for cash at a redemption price of 100%of their principal
amount, plus accrued and unpaid interest. Holders may require us to repurchase all or a portion
of their notes for cash on July 15 of 2008, 2013, 2018, 2023, and 2028 or upon the occurrence of
certain designated events at a repurchase price equal to the principal amount of the notes, plus
accrued and unpaid interest. Interest is payable semi-annually on January 15 and July 15.
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