JetBlue Airlines 2006 Annual Report Download - page 62

Note 2—Long-term Debt, Short-term Borrowings and Capital Lease Obligations
Long-term debt and the related weighted average interest rate at December 31, 2006 and 2005
consisted of the following (in millions):
2006 2005
Secured Debt
Floating rate equipment notes, due through 2018 (1) ........... $ 772 7.2%$ 875 6.3%
Floating rate enhanced equipment notes (2)(3)
Class G-1, due through 2016 .............................. 341 6.0%287 5.0%
Class G-2, due 2014 and 2016 ............................. 373 6.2%373 5.2%
Class B-1, due 2014 ...................................... 49 8.4%—
Class C, due through 2008 ................................ 162 9.0%222 8.0%
Fixed rate equipment notes, due through 2019................. 520 6.6%34 6.3%
Fixed rate special facility bonds, due through 2036 (4) .......... 84 5.9%45 6.7%
Unsecured Debt
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⁄ 4 %convertible debentures due in 2035 (5) .................. 250 250
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⁄ 2 %convertible notes due in 2033 (6) ....................... 175 175
Capital Leases (Note 3) .................................... 75 6.0%—
Total debt and capital lease obligations ....................... 2,801 2,261
Less: current maturities ................................... (175) (158)
Long-term debt and capital lease obligations .................. $ 2,626 $ 2,103
(1) Interest rates adjust quarterly or semi-annually based on the London Interbank Offered Rate, or
LIBOR, plus a margin.
(2) In November 2006, we completed a public offering of $124 million of pass-through certificates, to
finance certain of our owned aircraft spare parts. Separate trusts were established for each class of
these certificates. The entire principal amount of the Class G-1 and Class B-1 certificates is
scheduled to be paid in a lump sum on the applicable maturity date. The interest rate for all
certificates is based on three month LIBOR plus a margin. Interest is payable quarterly.
(3) 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.
(4) In December 2006, the New York City Industrial Development Agency issued special facility
revenue bonds for JFK and, in November 2005, the Greater Orlando Aviation Authority issued
special purpose airport facilities revenue bonds for reimbursement to us for certain facility
construction and other costs. We have recorded the issuance of $39 million (net of $1 million
discount) and $45 million (net of $2 million discount), respectively, as long-term debt on our
consolidated balance sheet because we have issued a guarantee of the debt payments on the
bonds. This fixed rate debt is secured by leasehold mortgages of our airport facilities.
(5) 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
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