Air Canada 2010 Annual Report Download - page 105

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Consolidated Financial Statements and Notes
105
6. LONG-TERM DEBT AND CAPITAL LEASES
Base
Currency
Final
Maturity
Actual
Interest
Rate (%)
2010 2009
Embraer aircraft financing (a) USD 2017 - 2021 2.18 - 8.49 $ 1,041 $ 1,164
Boeing aircraft financing (b) USD 2019 - 2021 0.29 - 5.69 386 450
Boeing aircraft financing (c) JPY 2020 0.33 207 210
Senior secured first lien notes (d) USD 2015 9.25 597 -
Senior secured first lien notes (d) CDN 2015 10.13 300 -
Senior secured second lien notes (d) USD 2016 12.00 199 -
Term credit facility (e) CDN 2014 - 593
Aircraft leasing entities - debt (f) Note 2Z 533 662
Term loan due 2013 (g) USD 2013 6.25 75 78
Conditional sales agreements (h) USD 2019 3.20 - 3.29 123 140
Fuel facility corporations - debt (i) Note 2Z 134 136
Spare parts financing (j) USD 2014 5.74 100 138
Spare engine financing (k) USD 2013 3.70 62 74
Canadian Regional Jet financing (l) CDN 2012 2.98 10 17
GE flight simulator financing (m) USD 2015 3.50 13 17
Long-term debt 
3,780 3,679
Capital lease obligations (n) 
755 904
Total debt and capital leases 
4,535 4,583
Unamortized discount (16) -
Unamortized debt issuance costs (62) (61)
Current portion 
(505) (468)
Long-term debt and capital leases 
$ 3,952 $ 4,054
The Interest Rate in the table above is the actual rate as of December 31, 2010
Amounts reported below are before any transaction costs or fees recorded net against the carrying value of the debt.
Refer to note (f) for a description of a loan facility entered into on August 20, 2010 to refinance certain borrowings due in
2011 and 2012.
(a) Embraer aircraft financing amounts to US$1,046 as at December 31, 2010 (US$1,112 as at December 31, 2009).
Principal and interest is repaid quarterly until maturity and the financing has both fixed and variable interest rates.
The fixed rate financing of US$796 bears interest at rates ranging from 6.39% to 8.49% (6.39% to 8.49% as at
December 31, 2009) and the variable rate financing of US$250 bears interest at a three month US LIBOR plus 1.9%
(2.18% to 2.20% as at December 31, 2010 and 2.15% to 2.18% as at December 31, 2009). The financing can be
repaid at any time, in whole or in part, with the payment of applicable fees. The financing is secured by the 60
delivered Embraer aircraft, with a carrying value of $1,527.
(b) Boeing aircraft financing amounts to US$388 as at December 31, 2010 (US$430 as at December 31, 2009), which
is financed under loan guarantee support provided by the Export-Import Bank of the United States (“EXIM”).
Principal and interest is repaid quarterly until maturity and the financing has both fixed and variable interest rates.
The fixed rate financing of US$139 bears interest at rates ranging from 5.41% to 5.69% (5.41% to 5.69% as at
December 31, 2009) and the variable rate financing of US$249 bears interest at a three month US LIBOR (0.29% to
0.31% as at December 31, 2010 and 0.25% to 0.28% as at December 31, 2009). The financing can be repaid at any
time, in whole, with the payment of applicable fees. The financing is secured primarily by 5 delivered aircraft with a
carrying value of $607.
(c) Boeing aircraft financing amounts to JPY16,872 as at December 31, 2010 (JPY18,671 as at December 31, 2009),
which is financed under loan guarantee support provided by EXIM. Principal and interest is repaid quarterly until
maturity and the financing bears interest at a three month JPY LIBOR (0.33% as at December 31, 2010 and 0.46% to
0.47% as at December 31, 2009). The financing can be repaid at any time, in whole, with the payment of applicable
fees. The financing is secured primarily by 2 delivered aircraft with a carrying value of $225.