US Airways 2008 Annual Report Download - page 145

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
3. Debt
The following table details US Airways' debt as of December 31, 2008 and 2007 (in millions). Variable interest rates listed are the
rates as of December 31, 2008 unless noted.
December 31, December 31,
2008 2007
Secured
Equipment loans, aircraft pre-delivery payment financings and other notes payable, fixed and variable interest
rates ranging from 1.87% to 12.15%, averaging 5.75% as of December 31, 2008, maturing from 2010 to
2020(a) $ 1,674 $ 802
Aircraft enhanced equipment trust certificates ("EETCs"), fixed interest rates ranging from 7.08% to 9.01%,
averaging 7.79% as of December 31, 2008, maturing from 2015 to 2022(b) 540 576
Slot financing, fixed interest rate of 8.08%, interest only payments until due in 2015(c) 47 47
Capital lease obligations, interest rate of 8%, installments due through 2021(d) 39 41
Senior secured discount notes, variable interest rate of 5.34%, due in 2009(e) 32 32
Capital lease obligations, computer software — 1
2,332 1,499
Unsecured
Airbus advance, repayments beginning in 2010 through 2018(f) 207 —
Engine maintenance notes(g) 72 57
Industrial development bonds, fixed interest rate of 6.3%, interest only payments until due in 2023(h) 29 29
Note payable to Pension Benefit Guaranty Corporation, fixed interest rate of 6%, interest only payments until
due in 2012(i) 10 10
Other notes payable, due in 2009 45 —
363 96
Total long-term debt and capital lease obligations 2,695 1,595
Less: Total unamortized discount on debt (113) (121)
Current maturities, less $10 million of unamortized discount on debt at December 31, 2008 (346) (101)
Long-term debt and capital lease obligations, net of current maturities $ 2,236 $ 1,373
(a) The following are the significant secured financing agreements entered into in 2008:
On February 1, 2008, US Airways entered into a loan agreement for $145 million, secured by six Bombardier CRJ-700 aircraft, three
Boeing 757 aircraft and one spare engine. The loan bears interest at a rate of LIBOR plus an applicable margin and is amortized over
ten years. The proceeds of the loan were used to repay $97 million of the equipment notes previously secured by the six Bombardier
CRJ-700 aircraft and three Boeing 757 aircraft.
On February 29, 2008, US Airways entered into a credit facility agreement for $88 million to finance certain pre-delivery payments
required by US Airways' purchase agreements with Airbus. As of December 31, 2008, the outstanding balance of this credit facility
agreement is $73 million. The remaining amounts under this facility will be drawn as pre-delivery payments come due. The loan
bears interest at a rate of LIBOR plus an applicable margin and is repaid as the related aircraft are delivered with a final maturity date
of the loan in November 2010.
In the second quarter of 2008, US Airways entered into facility agreements with three lenders in the amounts of $199 million,
$198 million, and $119 million to finance the acquisition of certain Airbus A320 family aircraft deliveries starting in the second half
of 2008. The loans bear interest at a rate of LIBOR plus an applicable
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