JetBlue Airlines 2010 Annual Report Download - page 63

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Note 2—Long-term Debt, Short-term Borrowings and Capital Lease Obligations
Long-term debt and capital lease obligations and the related weighted average interest rate at
December 31, 2010 and 2009 consisted of the following (in millions):
2010 2009
Secured Debt
Floating rate equipment notes, due through 2025 (1) ........ $ 696 2.5% $ 697 2.4%
Floating rate enhanced equipment notes (2) (3)
Class G-1, due through 2016 ........................ 234 2.9% 265 2.7%
Class G-2, due 2014 and 2016 ....................... 373 1.9% 373 1.5%
Class B-1, due 2014 .............................. 49 5.4% 49 4.6%
Fixed rate equipment notes, due through 2025 ............. 1,144 6.3% 1,163 6.3%
Fixed rate special facility bonds, due through 2036 (4) ....... 84 6.0% 85 6.0%
UBS line of credit (5) ............................... — 56
Unsecured Debt
6.75% convertible debentures due in 2039 (6) ............. 201 201
3.75% convertible debentures due in 2035 (7) ............. — 154
5.5% convertible debentures due in 2038 (8) .............. 123 123
3.5% convertible notes due in 2033 ..................... — 1
Capital Leases (9) ................................. 129 3.8% 137 3.8%
Total debt and capital lease obligations .................. 3,033 3,304
Less: current maturities ............................ (183) (384)
Long-term debt and capital lease obligations .............. $2,850 $2,920
(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. In April 2009, we entered into interest rate swap
agreements that have effectively fixed the interest rate increases for the remaining term of half of the
Class G-1 certificates and all of the Class B-1 certificates for the November 2006 offering. The swapped
portion of the Class G-1 and Class B-1 certificates had a balance of $37 million and $49 million,
respectively, at December 31, 2010, and the effective interest rates included in the above table. The
interest rate for the remaining half of the Class G-1 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. Quarterly principal
payments are required on the Class G-1 certificates. The entire principal amount of the Class G-2
certificates is scheduled to be paid in a lump sum on the applicable maturity dates. In June and
November 2008, we fully repaid the principal balances of the Class C certificates. In February 2008, we
entered into interest rate swap agreements that have effectively fixed the interest rate for the remaining
term of the Class G-1 certificates for the November 2004 offering. These certificates had a balance of
$107 million at December 31, 2010 and an effective interest rate of 4.6%. In February 2009, we entered
into interest rate swap agreements that have effectively fixed the interest rate for the remaining term of the
Class G-2 certificates for the November 2004 offering. These certificates had a balance of $185 million at
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