US Airways 2010 Annual Report Download - page 85

Table of Contents
4. Debt
The following table details the Company's debt (in millions). Variable interest rates listed are the rates as of December 31, 2010.
December 31, December 31,
2010 2009
Secured
Citicorp North America loan, variable interest rate of 2.79%, installments due through 2014 (a) $ 1,152 $ 1,168
Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.66% to 10.29%,
maturing from 2011 to 2029 (b) 1,920 2,201
Aircraft enhanced equipment trust certificates ("EETCs"), fixed interest rates ranging from 6.25% to 9.01%,
maturing from 2015 to 2023 (c) 809 505
Other secured obligations, fixed interest rate of 8%, maturing from 2015 to 2021 85 84
Senior secured discount notes — 32
3,966 3,990
Unsecured
Barclays prepaid miles, variable interest rate of 5.01%, interest only payments (d) 200 200
Airbus advance, repayments through 2018 (e) 222 247
7.25% convertible senior notes, interest only payments until due in 2014 (f) 172 172
7% senior convertible notes, interest only payments until due in 2020 (g) 5 74
Industrial development bonds, fixed interest rate of 6.3%, interest only payments until due in 2023 (h) 29 29
Other unsecured obligations, maturing from 2011 to 2012 23 81
651 803
Total long-term debt and capital lease obligations 4,617 4,793
Less: Total unamortized discount on debt (217) (267)
Current maturities, less $9 million of unamortized discount on debt at December 31, 2009 (397) (502)
Long-term debt and capital lease obligations, net of current maturities $ 4,003 $ 4,024
(a) On March 23, 2007, US Airways Group entered into a term loan credit facility with Citicorp North America, Inc., as administrative
agent, and a syndicate of lenders pursuant to which US Airways Group borrowed an aggregate principal amount of $1.6 billion. US
Airways and certain other subsidiaries of US Airways Group are guarantors of the Citicorp credit facility.
The Citicorp credit facility bears interest at an index rate plus an applicable index margin or, at the Company's option, LIBOR plus
an applicable LIBOR margin for interest periods of one, two, three or six months. The applicable index margin, subject to
adjustment, is 1.00%, 1.25% or 1.50% if the adjusted loan balance is less than $600 million, between $600 million and $1 billion, or
greater than $1 billion, respectively. The applicable LIBOR margin, subject to adjustment, is 2.00%, 2.25% or 2.50% if the adjusted
loan balance is less than $600 million, between $600 million and $1 billion, or greater than $1 billion, respectively. In addition,
interest on the Citicorp credit facility may be adjusted based on the credit rating for the Citicorp credit facility as follows: (i) if the
credit ratings of the Citicorp credit facility by Moody's and S&P in effect as of the last day of the most recently ended fiscal quarter
are both at least one subgrade better than the credit ratings in effect on March 23, 2007, then (A) the applicable LIBOR margin will
be the lower of 2.25% and the rate otherwise applicable based upon the adjusted Citicorp credit facility balance and (B) the
applicable index margin will be the lower of 1.25% and the rate otherwise applicable based upon the Citicorp credit facility
principal balance, and (ii) if the credit ratings of the Citicorp credit facility by Moody's and S&P in effect as of the last day of the
most recently ended fiscal quarter are both at least two subgrades better than the credit ratings in effect on March 23, 2007, then
(A) the applicable LIBOR margin will be 2.00% and (B) the applicable index margin will be 1.00%. As of December 31, 2010, the
interest rate on the Citicorp credit facility was 2.79% based on a 2.50% LIBOR margin.
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