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62 WestJet 2009 Annual Report
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
For the years ended December 31, 2009 and 2008
(Stated in thousands of Canadian dollars, except share and per share data)
7. Long-term debt
(i) 52 individual term loans, amortized on a straight-line basis over a 12-year term, each repayable in quarterly principal instalments ranging from
$668 to $955, including fi xed interest at a weighted average rate of 5.32%, maturing between 2014 and 2020. These facilities are guaranteed
by Ex-Im Bank and secured by one 800-series aircraft, 38 700-series aircraft and 13 600-series aircraft.
(ii) Term loan of US $32,000 repayable in quarterly instalments of US $1,788, including fi xed interest at a rate of 4.315%, maturing in 2014. This
facility is secured by one 800-series aircraft.
(iii) Term loan repayable in monthly instalments of $91, including fl oating interest at the bank’s prime rate plus 0.88%, with an effective interest
rate of 3.13% as at December 31, 2009, maturing in 2011, secured by one fl ight simulator.
(iv) Three individual term loans, amortized on a straight-line basis over a fi ve-year term, repayable in quarterly principal instalments of $41,
including fl oating interest at the Canadian LIBOR rate plus 0.08%, with a weighted average effective interest rate of 1.80% as at December
31, 2009, maturing in 2010 and 2011. These facilities are for the purchase of live satellite television equipment, are guaranteed by the Ex-Im
Bank and are secured by certain 700-series and 600-series aircraft.
(v) Term loan repayable in monthly instalments of $108, including fi xed interest at 9.03%, maturing April 2011, secured by the Calgary
Hangar facility.
(vi) Term loan repayable in monthly instalments of $50, including fl oating interest at the bank’s prime rate plus 0.50%, with an effective interest
rate of 2.75% as at December 31, 2009, maturing April 2013, secured by the Calgary Hangar facility.
The net book value of the property and equipment pledged as collateral for the Corporation’s secured borrowings was $1,925,672 as at December
31, 2009 (2008 – $2,012,915).
Future scheduled repayments of long-term debt are as follows:
Held within the special-purpose entities, as identifi ed in note 1, signifi cant accounting policies, are liabilities of $1,168,907 (2008 – $1,332,859) related
to the acquisition of the 52 purchased aircraft and live satellite television equipment, which are included above in the long-term debt balances.
2009 2008
Term loans – purchased aircraft (i) $ 1,168,381 $ 1,331,083
Term loan – purchased aircraft (ii) 33,631 —
Term loan – fl ight simulator (iii) 6,392 7,265
Term loans – live satellite television equipment (iv) 493 1,740
Term loan – Calgary Hangar facility (v) 9,202 9,648
Term loan – Calgary Hangar facility (vi) 1,678 2,167
1,219,777 1,351,903
Current portion 171,223 165,721
$ 1,048,554 $ 1,186,182
2010 $ 171,223
2011 183,924
2012 169,992
2013 169,750
2014 170,019
2015 and thereafter 354,869
$ 1,219,777