SkyWest Airlines 2009 Annual Report Download - page 77

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2009
(2) Long-term Debt (Continued)
The aggregate amounts of principal maturities of long-term debt as of December 31, 2009 were as
follows (in thousands):
2010 .................................................. $ 148,571
2011 .................................................. 152,747
2012 .................................................. 199,446
2013 .................................................. 153,117
2014 .................................................. 158,750
Thereafter ............................................. 1,152,258
$1,964,889
As of December 31, 2009 and 2008, SkyWest Airlines had a $25 million line of credit. As of
December 31, 2009 and 2008, SkyWest Airlines had no amount outstanding under the facility. The
facility expires on March 31, 2010 and has a fixed interest rate of 4.96%.
As of December 31, 2009, the Company had $49.7 million in letters of credit and surety bonds
outstanding with various banks and surety institutions.
During 2009, the Company issued $300.7 million of long-term debt related to the purchase of 14
new CRJ 700s and one CRJ900.
Certain of the Company’s long-term debt arrangements contain limitations on, among other things,
the sale or lease of assets and ratio of long-term debt to tangible net worth. As of December 31, 2009,
the Company was in compliance with all debt covenants. Management believes that in the absence of
unusual circumstances, the working capital available to the Company will be sufficient to meet the
present financial requirements, including expansion, capital expenditures, lease payments and debt
service obligations for at least the next 12 months.
(3) Note Receivable
On October 16, 2009, SkyWest Airlines extended to United a secured term loan in the amount of
$80 million. The term loan bears interest at a rate of 11%, with a ten-year amortization period. The
loan is secured by certain ground equipment and certain airport slot rights held by United. As of
December 31, 2009, the Company has classified $71.3 million as non-current and has identified the
note receivable as ‘‘Other assets’’ in its Consolidated Balance Sheet. The Company has also classified
$8.0 million as current and has identified the note receivable as ‘‘Receivables, net’’ in its Consolidated
Balance Sheet.
SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines
under the existing United Express Agreement for a maximum period of 30 days. The maximum deferral
amount is $49 million and any amounts deferred accrue a deferral fee of 8%, payable weekly. As of
December 31, 2009, $49 million was deferred for 30 days. United’s right to defer such payments
continues through October 16, 2019 subject to certain conditions. As of December 31, 2009, the
Company has classified $49.0 million as current and has identified the deferred amount as
‘‘Receivables, net’’ in its Consolidated Balance Sheet.
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