US Airways 2006 Annual Report Download - page 153

Table of Contents
America West Airlines, Inc.
Notes to Consolidated Financial Statements — (Continued)
AWA is exposed to credit risks in the event any counterparty to a hedge transaction fails to meet its obligations. AWA does not
anticipate such non-performance as counterparties are selected based on credit ratings and exposure to any one counterparty is closely
monitored.
6. Debt, Including Capital Lease Obligations
Long-term debt at December 31, 2006 and December 31, 2005 consists of the following (variable interest rates listed are the rates as
of December 31, 2006 unless noted) (in millions):
December 31, 2006 December 31, 2005
Secured
AWA Citibank Loan (formerly ATSB loan)(a) $ — $ 250
GECC term loan(a) — 111
Senior secured discount notes, variable interest rate of 8.75%, installments due 2005 through 2009(b) 33 34
Airbus Loans(a) — 186
Capital lease obligations 2 —
35 581
Unsecured
7.5% convertible senior notes(c) — 112
Equipment notes payable, interest rates of 90-day LIBOR +1.25%, averaging 5.5%, installments due
through 2006 — 4
Industrial development bonds, fixed interest rate of 6.3% due 2023(d) 29 29
State loan — 1
Juniper prepaid miles, variable interest rate of 10.10%, interest only payments until due in 2010(e) 325 325
354 471
Total long-term debt and capital lease obligations 389 1,052
Less: Unamortized discount on debt (3) (22)
Current maturities (2) (94)
Long-term debt and capital lease obligations, net of current maturities $ 384 $ 936
(a) On March 31, 2006, US Airways Group entered into a loan agreement with General Electric Capital Corporation ("GECC") and a
syndicate of lenders pursuant to which the Company borrowed an aggregate principal amount of $1.1 billion. On April 7, 2006,
US Airways Group entered into an amended and restated loan agreement, which increased the principal amount of the loan to
$1.25 billion (as amended and restated, the "GE Loan"). US Airways, America West Holdings, AWA and other subsidiaries of
US Airways Group are all guarantors of the GE Loan.
On March 31, 2006, proceeds of the GE Loan were used, in part, to repay in full the following indebtedness of AWA:
• The amended and restated AWA loans entered into on September 27, 2005 that had previously been guaranteed by the ATSB. On
October 19, 2005, $238 million of the loans, of which $228 million had been guaranteed by the ATSB, was sold by the lenders
by order of the ATSB to 13 fixed income investors, for which Citibank, N.A served as agent, removing the ATSB guarantee (the
"Citibank Loans"). As a result of the sale of the loan, the AWA ATSB Loan is now called the AWA Citibank Loan. At the time
of repayment of these loans on March 31, 2006, the total outstanding balance of the loan was $250 million.
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