US Airways 2005 Annual Report Download - page 130

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
December 31, December 31,
2005 2004
Unsecured
AWA ATSB Loan, reclassified as secured in 2005(a) — 343
7% senior convertible notes, interest only payments until due in 2020(i) 144 —
103/4% senior unsecured notes, redeemed January 2005(j) — 40
7.5% convertible senior notes, interest only payments until due in 2009(k) 112 112
7.25% senior exchangeable notes(l) — 253
Equipment notes payable, interest rates of 90-day LIBOR +1.25%, averaging 5.5%, installments due through 2006 4 16
Industrial development bonds, fixed interest rate of 6.3% due 2023(m) 29 29
State loan, variable interest rate of 8.99%, installments due 2005 through 2007 1 1
Juniper prepaid miles, variable interest rate of 8.61%, interest only payments until due in 2010(n) 325 —
Note payable to PBGC, interest rate of 6%, interest only payments until due 2012(o) 10 —
625 794
Total long-term debt and capital lease obligations 3,121 988
Less: Unamortized discount on debt (161) (193)
Current maturities (211) (155)
Long-term debt and capital lease obligations, net of current maturities $ 2,749 $ 640
(a) In January 2002, AWA closed a $429 million loan backed by a $380 million federal loan guarantee provided by the ATSB. Certain third-party counter-
guarantors fully and unconditionally guaranteed the payment of an aggregate of $45 million of the outstanding principal amount under the government
guaranteed loan plus accrued and unpaid interest thereon. In addition, America West Holdings fully and unconditionally guaranteed the payment of all
principal, premium, interest and other obligations outstanding under the government guaranteed loan and pledged the stock of AWA to secure its
obligations under such guarantee. Principal amounts under this loan were scheduled to become due in ten installments of $43 million on each March 31
and September 30, commencing on March 31, 2004 and ending on September 30, 2008. In addition, AWA was charged an annual guarantee fee in
respect of the ATSB guarantee equal to 8.0% of the guaranteed amount in 2005. On September 27, 2005, AWA made a voluntary prepayment of
$9 million in principal, thus reducing the remaining semi-annual installments due to $42 million. Principal amounts outstanding under the government
guaranteed loan bear interest at a rate per annum equal to LIBOR plus 40 basis points.
In connection with the consummation of the merger, on September 27, 2005, AWA, as borrower, entered into an Amended and Restated Loan
Agreement (the "AWA ATSB Loan") with the ATSB. The ATSB Loan amended and restated the previously outstanding loans of AWA guaranteed in
part by the ATSB. On October 19, 2005, $238 million of the AWA ATSB Loan, of which $228 million was guaranteed by the ATSB, was sold by the
lender by order of the ATSB to 13 fixed income investors. The sale of the debt removed the ATSB guaranty. Due to the sale on October 19, 2005, the
ATSB no longer guarantees any portion of the loan and has no interest in any of AWA's debt. As a result of the sale of the loan, $11 million of the
outstanding principal balance remains guaranteed by certain third party counter- guarantors. The non-guaranteed portion of the loan is no longer subject
to payment of the annual guarantee fee; rather, as of the date of the loan sale, those principal amounts
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