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2005 WESTJET ANNUAL REPORT
49
The net book value of the property and equipment pledged as collateral for the Corporation’s secured borrowings was
$1,549,107,000 as at December 31, 2005 (2004 – $1,288,497,000).
Held within the special-purpose entities, as described in note 1, are liabilities of $1,392,629,000 (2004 – $1,178,239,000) and
corresponding assets of $1,393,801,000 (2004 – $1,178,342,000), which are included in the consolidated financial statements.
Future scheduled repayments of long-term debt are as follows:
2006 $ 114,115
2007 114,300
2008 127,279
2009 111,514
2010 110,660
2011 and thereafter 580,966
$ 1,158,834
During the year, the Corporation converted US $402 million of preliminary commitments with the Export-Import Bank of the
United States (“Ex-Im Bank”) into a final commitment to support the acquisition of five Boeing Next-Generation 737-700
aircraft and eight Boeing Next-Generation 737-600 aircraft, their related live satellite television systems and installation of
winglets on the 600-series aircraft, to be delivered between July 2005 and July 2006. As at December 31, 2005 the unutilized
and uncancelled balance of the final commitment from Ex-Im Bank was US $188.8 million. In addition, Ex-Im Bank has
provided a preliminary commitment of US $324 million to cover an additional 10 aircraft to be delivered between July 2006
and November 2007.
During the year, the Corporation completed financing arrangements for US $386 million supported by loan guarantees from
the Ex-Im Bank on 13 aircraft as outlined above. This facility will be drawn in Canadian dollars, in separate instalments,
with 12-year terms for each new aircraft. Each loan will be amortized on a straight-line basis over the 12-year term with
quarterly principal instalments, and interest calculated on the outstanding balance. As at December 31, 2005 the Corporation
has taken delivery of the first seven aircraft under this facility and has drawn a total of $256.4 million (US $213.2 million).
The Corporation is charged a commitment fee of 0.125% per annum on the unutilized and uncancelled balance of the
Ex-Im Bank final commitment, payable at specified dates and upon delivery of an aircraft, and is charged a 3% exposure
fee on the financed portion of the aircraft price, payable upon delivery of an aircraft.
The Corporation has available a facility with a Canadian chartered bank of $8,000,000 (2004 – $8,000,000) for letters of
guarantee. At December 31, 2005, letters of guarantee totaling $6,830,000 (2004 – $7,977,000) have been issued under this
facility. The facility is secured by a general security agreement and an assignment of insurance proceeds.
Cash interest paid during the year was $54,688,000 (2004 – $42,346,000).