v3.25.2
DEBT
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Credit Facilities
In March 2025, the Company executed a new $75,000 Revolving Credit Facility with a group of lenders. The new Revolving Credit Facility replaces the Company's previous $25,000 revolving credit facility. The interest rate on borrowings is determined using a base rate plus an applicable margin of 2.5%. In addition, there is a commitment fee on the unused Revolving Credit Facility of 0.6%. The Revolving Credit Facility is guaranteed by the Company and secured by a pool of collateral. Accordingly, the Company pledged certain assets as collateral, including certain previously unencumbered aircraft, to support the ability to efficiently utilize the Revolving Credit Facility. Available funds from the Revolving Credit Facility can be used for general corporate purposes. The Revolving Credit Facility includes financial covenants that require the Company to maintain: 1) minimum liquidity, as defined within the agreement, of not less than $55,000, 2) a minimum adjusted EBITDAR of $110,000 for any four consecutive fiscal quarters and 3) a minimum ratio of the borrowing base of the collateral to outstanding obligations under the Revolving Credit Facility of not less than 1.0 to 1.0. The Company was in compliance with these financial covenants as of June 30, 2025. As of June 30, 2025, the Company had $75,000 of financing available through the Revolving Credit Facility.
Long-term Debt
Term Loan Credit Facility
During the three months ended March 31, 2023, the Company executed a term loan credit facility with a face amount of $119,200 ("Term Loan Credit Facility") for the purpose of financing the five Owned Aircraft Held for Operating Lease. The loan is repaid monthly through March 2030. During the lease term, payments collected from the lessee are applied directly to the repayment of principal and interest on the Term Loan Credit Facility. The Owned Aircraft Held for Operating Lease, as well as the related lease payments received from the lessee, are pledged as collateral. In December 2024, the Company made a partial repayment of $60,000 on the Term Loan Credit Facility using proceeds from the reissued Class C trust certificates Series 2019-1.
The interest rate on the Term Loan Credit Facility is determined using a base rate, which resets monthly, plus an applicable margin, and a fixed credit spread adjustment of 0.1%. The applicable margin during the lease term is fixed at 3.75%, and is subsequently reduced to 3.25% once the aircraft have been redelivered to the Company and a Loan-to-Value ("LTV") ratio calculation is completed. To the extent that the LTV ratio exceeds 75% at the end of the lease term, a principal prepayment will be required in order to reduce the ratio to 75%. For more information on the LTV and the Company's related accounting policies, see Note 7, "Debt" included within Part II, Item 8 of the 2024 10-K.
As of June 30, 2025, the lease terms had expired for two Owned Aircraft Held for Operating Lease. As of the lease term expiry dates, the LTV ratios were below 75%. Therefore, principal prepayments were not required. The interest rate in effect as of June 30, 2025 for the redelivered aircraft was 7.7%. The interest rate in effect for the three remaining Owned Aircraft Held for Operating Lease as of June 30, 2025 was 8.2%.
Pass-Through Trust Certificates
During March 2022, the Company arranged for the issuance of Class A and Class B certificates Series 2022-1 (the "2022-1 EETC") in an aggregate face amount of $188,277 for the purpose of financing or refinancing 13 aircraft. The Company is required to make bi-annual principal and interest payments each March and September, through March 2031. These notes bear interest at an annual rate between 4.84% and 5.75%. The weighted average interest rate was 5.05% as of June 30, 2025.
In December 2019, the Company arranged for the issuance of Class A, Class B and Class C trust certificates Series 2019-1 (the “2019-1 EETC”), in an aggregate face amount of $248,587 for the purpose of financing or refinancing 13 aircraft, which was completed in 2020. The Company is required to make bi-annual principal and interest payments each June and December, through December 2027.
In December 2024, the Company reissued Class C trust certificates from the 2019-1 EETC, which had previously been repaid, in an aggregate face amount of $60,000 and concurrently applied the proceeds to repay a portion of the Term Loan Credit Facility. The reissued Class C trust certificates had no impact on the bi-annual payment schedule or the term of the 2019-1 EETC. The 2019-1 EETC notes bear interest at an annual rate between 4.13% and 7.10%. The weighted average interest rate was 5.43% as of June 30, 2025.
Long-term Debt includes the following:
June 30, 2025December 31, 2024
2019-1 EETC (see terms and conditions above)$131,811 $158,510 
2022-1 EETC (see terms and conditions above)128,410 138,532 
Term Loan Credit Facility (see terms and conditions above)24,273 33,080 
  Total Debt284,494 330,122 
Less: Unamortized debt issuance costs(2,427)(3,000)
Less: Current Maturities of Long-term Debt, net(81,438)(87,579)
Total Long-term Debt, net$200,629 $239,543 
Future maturities of the outstanding Debt are as follows:
Debt Principal
Payments		Amortization of Debt
Issuance Costs		Net Debt
Remainder of 2025
$46,832 $(519)$46,313 
202665,439 (809)64,630 
202786,649 (595)86,054 
202820,355 (260)20,095 
202928,400 (155)28,245 
Thereafter36,819 (89)36,730 
Total as of June 30, 2025
$284,494 $(2,427)$282,067 
The fair value of Debt was $273,041 as of June 30, 2025 and $311,103 as of December 31, 2024. The fair value of the Company’s debt was based on the discounted amount of future cash flows using the Company’s end-of-period estimated incremental borrowing rate for similar obligations. The estimates were primarily based on Level 3 inputs