Air Canada 2009 Annual Report Download - page 106

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2009 Air Canada Annual Report
106
6. LONG-TERM DEBT AND CAPITAL LEASES
Base
Currency
Final
Maturity
Actual
Interest
Rate %
2009 2008
Embraer aircraft fi nancing (a) USD 2017 - 2021 2.15 - 8.49 $ 1,150 $ 1,425
Boeing aircraft fi nancing (b) USD 2019 - 2021 0.25 - 5.69 436 871
Boeing aircraft fi nancing (c) JPY 2020 0.46 - 0.47 205 270
Term Credit Facility (d) CDN 2014 12.75 573 -
Aircraft leasing entities - debt (e) Note 2Z 662 828
Term loan due 2013 (f) USD 2013 6.21 78 190
Conditional sales agreements (g) USD 2019 3.15 - 3.31 140 175
Fuel facility corporations - debt (h) Note 2Z 136 125
Spare parts fi nancing (i) USD 2014 5.73 132 97
Spare engine fi nancing (j) USD 2013 3.65 72 95
Boeing pre-delivery payments (k) Note 2Z USD 2009 - 81
Revolving credit facility (l) CDN - 50
Canadian Regional Jet (m) CDN 2012 2.13 17 25
GE loan (n) USD 2015 3.19 17 24
Lufthansa cooperation agreement (o) USD 2009 - 16
Long-term debt 3,618 4,272
Capital lease obligations (p) 904 1,082
Total debt and capital leases 4,522 5,354
Current portion (468) (663)
Long-term debt and capital leases $ 4,054 $ 4,691
The Interest Rate in the table above is the actual rate as of December 31, 2009
Amounts reported below are before any transaction costs or fees recorded net against the value of the debt.
(a) Embraer aircraft fi nancing amounts to US$1,112 as at December 31, 2009 (US$1,163 as at December 31, 2008).
Principal and interest is repaid quarterly until maturity and the fi nancing has both fi xed and variable interest rates.
The fi xed rate fi nancing of US$847 bears interest at rates ranging from 6.39% to 8.49% and the variable rate
fi nancing of US$265 bears interest at a three month US LIBOR plus 1.9% (2.15% to 2.18%). The fi nancing can
be repaid at any time, in whole or in part, with the payment of applicable fees. The fi nancing is secured by the 60
delivered Embraer aircraft, with a carrying value of $1,591.
(b) Boeing aircraft fi nancing amounts to US$430 as at December 31, 2009 (US$711 as at December 31, 2008), which
is fi nanced under loan guarantee support provided by EXIM. Principal and interest is repaid quarterly until maturity
and the fi nancing has both fi xed and variable interest rates. The fi xed rate fi nancing of US$155 bears interest at
rates ranging from 5.41% to 5.69% and the variable rate fi nancing of US$275 bears interest at a three month US
LIBOR (0.25% to 0.28%). The fi nancing can be repaid at any time, in whole, with the payment of applicable fees. The
fi nancing is secured primarily by the 5 delivered aircraft with a carrying value of $632.
(c) Boeing aircraft fi nancing amounts to JPY18,671 as at December 31, 2009 (JPY19,995 as at December 31, 2008),
which is fi nanced under loan guarantee support provided by the EXIM. Principal and interest is repaid quarterly until
maturity and the fi nancing bears interest at a three month JPY LIBOR (0.46% to 0.47%). The fi nancing can be repaid
at any time, in whole, with the payment of applicable fees. The fi nancing is secured primarily by the 2 delivered
aircraft with a carrying value of $234.
(d) In July 2009, the Corporation received fi nancing proceeds of $600, less fi nancing fees of $20, under a secured term
credit facility (the “Credit Facility”) pursuant to which the Corporation also issued warrants for the purchase of
Air Canada’s Class A Variable Voting Shares or Class B Voting Shares as further described below. The terms of the
Credit Facility permit, on or before the fi rst anniversary and subject to satisfaction of certain conditions, Air Canada
to request an increase to the facility by up to an additional $100 by obtaining new commitments from either the
existing or new lenders. The Credit Facility is repayable in 16 consecutive quarterly instalments commencing in