US Airways 2004 Annual Report Download - page 38

Table of Contents
Holders of the notes may require AWA to repurchase the notes at a price equal to the original issue price plus accrued cash interest and original issue
discount, if any, on July 30, 2008, 2013 and 2018. The purchase price of such notes may be paid in cash or class B common stock of Holdings, subject to
certain restrictions. In addition, each holder may require AWA to purchase all or a portion of such holder's notes upon the occurrence of certain change of
control events concerning AWA or Holdings. AWA may redeem the notes, in whole or in part, on or after July 30, 2008 at a price equal to the original issue
price plus accrued cash interest and original issue discount, if any.
Other Indebtedness and Obligations
In addition to the above described indebtedness, we had $39.5 million of secured equipment notes and $45.8 million of other unsecured indebtedness,
including $29.3 million of industrial revenue bonds.
The following table sets forth our cash obligations as of December 31, 2004.
Beyond
2005 2006 2007 2008 2009 2009 Total
(in thousands)
Long-term debt:
Equipment notes – non-EETC (1) $ 8,305 $ 8,305 $ 7,772 $ 15,082 $ — $ — $ 39,464
GECC term loan (2) — 5,158 5,158 5,158 5,158 89,932 110,564
7.5% convertible senior notes due 2009(3) — — — — 112,299 — 112,299
7.25% senior exchangeable notes due 2023 (4) — — — — — 252,695 252,695
Government guaranteed loan (5) 85,800 85,800 85,800 85,800 — — 343,200
State loan (6) 250 250 250 — — — 750
10 3/4% senior unsecured notes due 2005 39,548 — — — — — 39,548
Industrial development bonds (7) — — — — — 29,300 29,300
AVSA promissory notes (8) 15,750 — — — — — 15,750
Senior Secured Discount Notes (9) 1,530 1,529 1,529 1,530 29,870 — 35,988
151,183 101,042 100,509 107,570 147,327 371,927 979,558
Cash aircraft rental payments (10) 343,554 318,668 300,247 249,000 223,894 1,668,015 3,103,378
Lease payments on equipment and facility operating leases (11) 18,117 16,744 14,645 15,017 14,180 51,919 130,622
Capital lease obligations 4,659 4,988 1,773 — — — 11,420
Special facility revenue bonds (12) 1,363 1,363 1,362 1,362 2,044 36,106 43,600
Aircraft purchase commitments (13) 272,820 456,891 47,697 — — — 777,408
Engine maintenance commitments (14) 12,000 6,000 3,000 1,000 — — 22,000
Total $ 803,696 $ 905,696 $ 469,233 $ 373,949 $ 387,445 $ 2,127,967 $ 5,067,986
(1)
Includes approximately $39.5 million of equipment notes with variable interest rates of 2.88% to 3.37%, averaging 2.96% at December 31, 2004,
installments due 2005 through 2008.
(2)
The amount consists of two the Spare Parts Facility and the Engine Facility with a variable interest rate of 6.41% at December 31, 2004. See "—GECC Term
Loan Financing" above.
(3)
Includes $90.7 million principal amount of 7.5% convertible senior notes, due 2009, and $21.6 million of interest paid in kind of issuance through
December 31, 2004. For financial reporting purposes, we initially recorded the convertible senior notes at their fair market value on the date of issuance. As
of December 31, 2004, the accreted balance of the convertible senior notes in the accompanying consolidated balance sheet is approximately $68.5 million.
(4)
Includes $252.7 million principal amount of 7.25% senior exchangeable notes due July 2023 with cash interest payable through July 2008 at a rate of 2.49%
on the principal amount at maturity. Thereafter, the notes will cease bearing cash interest and begin accruing original issue discount at a rate of 7.25% until
maturity. The aggregate amount due at maturity, including accrued original issue discount from July 31, 2008, will be $252.7 million.
(5)
Government guaranteed loan includes $343.2 million with a variable interest rate of 2.38% at December 31, 2004 and ratable principal payments due 2005
through 2008. Guarantee fees of approximately 8.0% of the outstanding guaranteed principal balance in 2005 through 2008 are payable to the U.S. Treasury
Department and other loan participants.
(6)
Includes Arizona State loan of $0.8 million due December 2007 with a variable interest rate of 5.97% at December 31, 2004.
35