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7. LONG-TERM DEBT
(in millions)
December 31,
2013
December 31,
2012
5.25% Notes due 2014 ........................................ $ 357 $ 366
5.75% Notes due 2016 ........................................ 320 331
5.25% Convertible Senior Notes due 2016 ......................... 115 117
5.125% Notes due 2017 ....................................... 322 329
Fixed-rate 717 Aircraft Notes payable through 2017—10.37% ......... 41 57
French Credit Agreements due 2018 — 1.05% ..................... 46 56
Fixed-rate 737 Aircraft Notes payable through 2018—7.02% .......... 30 36
Term Loan Agreement due 2019 — 6.315% ....................... 210 241
Term Loan Agreement due 2019 — 6.84% ........................ 85 95
Term Loan Agreement due 2020 — 5.223% ....................... 413 451
Floating-rate 737 Aircraft Notes payable through 2020 ............... 340 527
Pass Through Certificates due 2022 — 6.24% ...................... 371 394
7.375% Debentures due 2027 ................................... 136 138
Capital leases (Note 8) ........................................ 56 37
$ 2,842 $ 3,175
Less current maturities ........................................ 629 271
Less debt discount and issuance costs ............................. 22 21
$ 2,191 $ 2,883
AirTran Long-Term Debt
AirTran Holdings previously entered into aircraft purchase financing facilities, under which a total of 22
737-700 aircrafts were financed as of December 31, 2013.
As of December 31, 2013, after prepaying aircraft secured term loans for eight aircraft during 2012 and the
first half of 2013, 19 Boeing 737 aircraft remain that were financed under floating-rate facilities. Each note is
secured by a first mortgage on the aircraft to which it relates. The notes bear interest at a floating rate per annum
equal to a margin plus the three or six-month LIBOR in effect at the commencement of each semi-annual or
three-month period, as applicable. As of December 31, 2013, the weighted average interest rate is 1.68 percent.
Principal and interest under the notes are payable semi-annually or every three months as applicable. As of
December 31, 2013, the remaining debt outstanding may be prepaid without penalty under all aircraft loans
provided under such facilities. The notes mature in years 2016 to 2020. As discussed further in Note 10, a portion
of the above floating-rate debt has been effectively converted to a fixed rate via interest rate swap agreements
which expire between 2016 and 2020.
As of December 31, 2013, three Boeing 737 aircraft were financed under a fixed-rate facility. Each note is
secured by a first mortgage on the aircraft to which it relates. As of December 31, 2013, the weighted average
interest rate is 7.02 percent. Payments of principal and interest under the notes are due semi-annually. The notes
mature in years 2016 to 2018.
As of December 31, 2013, eight Boeing 717 aircraft were pledged as collateral for the obligations related to
enhanced equipment trust certificates (EETCs). Principal and interest payments on the EETCs are due semi-
annually through April 2017. The EETCs bear interest at a fixed rate of 10.37 percent.
In October 2009, AirTran Holdings completed a public offering of $115 million of convertible senior notes
due in 2016. Such notes bear interest at 5.25 percent payable semi-annually, in arrears, on May 1 and
November 1. As a result of the acquisition and subsequent dividends declared by the Company, the convertible
senior notes are convertible into AirTran conversion units of 166.2806 per $1,000 in principal amount of such
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