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Debt Financing

12 Months Ended

Dec. 31, 2019

Debt Financing

Note 2. Debt Financing

The Company’s consolidated debt as of December 31, 2019 and 2018 is summarized below:


		December 31,			December 31,
		2019			2018
		(in thousands)
Unsecured
Senior notes		$	12,357,811		$	10,043,445
Term financings			883,050			607,340
Revolving credit facilities			20,000			602,000
Total unsecured debt financing			13,260,861			11,252,785
Secured
Term financings			428,824			371,203
Export credit financing			31,610			38,265
Total secured debt financing			460,434			409,468

Total debt financing			13,721,295			11,662,253
Less: Debt discounts and issuance costs			(142,429)			(123,348)
Debt financing, net of discounts and issuance costs		$	13,578,866		$	11,538,905

At December 31, 2019, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including its financial covenants concerning debt-to-equity, tangible net equity, and interest coverage ratios.

The Company’s secured obligations as of December 31, 2019 and 2018 are summarized below:


		December 31,			December 31,
		2019			2018
		(in thousands, except for number of aircraft)
Nonrecourse		$	128,460		$	167,245
Recourse			331,974			242,223
Total		$	460,434		$	409,468
Number of aircraft pledged as collateral			15			20
Net book value of aircraft pledged as collateral		$	890,693		$	1,132,111

Senior unsecured notes (including Medium-Term Note Program)

As of December 31, 2019, the Company had $12.4 billion in aggregate principal amount of senior unsecured notes outstanding with remaining terms ranging from 0.04 years to 9.76 years and bearing interest at fixed rates ranging from 2.125% to 4.85% with two notes bearing interest at a floating rate of LIBOR plus 1.125% and a floating rate of three-month LIBOR plus 0.67%. As of December 31, 2018, the Company had $10.0 billion in aggregate principal amount of senior unsecured notes outstanding bearing interest at fixed rates ranging from 2.125% to 7.375%.

During the year ended December 31, 2019, the Company issued $2.85 billion in aggregate principal amount of U.S. dollar denominated senior unsecured notes comprised of (i) $700.0 million in aggregate principal amount of 4.25% notes due 2024, (ii) $750.0 million in aggregate principal amount of 3.75% notes due 2026, (iii) $300.0 million in aggregate principal amount of floating rate notes due 2021 bearing interest at a floating rate of three-month LIBOR plus 0.67% (iv) $600.0 million in aggregate principal amount of 2.25% notes due 2023 and (v) $500.0 million in aggregate principal amount of 3.25% notes due 2029.

In December 2019, the Company issued Canadian dollar (“C$”) denominated debt of C$400.0 million in aggregate principal amount of 2.625% notes due 2024. The Company effectively hedged its foreign currency exposure on this transaction through a cross-currency swap that converts the borrowing rate to a fixed 2.535% U.S. dollar denominated rate. The swap has been designated as a cash flow hedge with changes in the fair value of the derivative recognized in other comprehensive loss/income. See Note 10. “Fair Value Measurements” for additional details on the fair value of the swap.

In January 2020, the Company issued $1.4 billion in aggregate principal amount of U.S. dollar denominated senior unsecured notes comprised of (i) $750.0 million in aggregate principal amount of 2.30% notes due 2025 and (ii) $650.0 million in aggregate principal amount of 3.00% notes due 2030.

Unsecured term financings

From time to time, the Company enters into unsecured term facilities. During 2019, the Company entered into three unsecured term facilities aggregating $205.0 million comprised of (i) a $80.0 million term facility with a term of one year and bearing interest at a floating rate of LIBOR plus 1.00%; (ii) a $75.0 million term facility with a term of three years and bearing interest at a floating rate of three-month LIBOR plus 1.00%; (iii) a $50.0 million term facility with a term of one year and bearing interest at a floating rate of LIBOR plus 1.00%. During 2019, the Company also entered into agreements to increase (a) the Company's $518.0 million term facility by $82.0 million to an aggregate principal amount of $600.0 million, with a term of four years and bearing interest at a floating rate of LIBOR plus 1.125% and (b) the Company’s $5.4 million term facility by $19.6 million to an aggregate principal amount of $25.0 million with the term of such facility extended four years and bearing interest at a fixed rate of 3.00%

The outstanding balance on the Company's unsecured term facilities as of December 31, 2019 was $883.1 million, bearing interest at fixed rates ranging from 2.75% to 3.50% and five facilities bearing interest at floating rates ranging from LIBOR plus 0.95% to LIBOR plus 1.125%. As of December 31, 2019, the remaining maturities of all unsecured term facilities ranged from approximately 0.09 years to approximately 4.75 years. As of December 31, 2018, the outstanding balance on the Company's unsecured term facilities was $607.3 million.

Unsecured revolving credit facilities

The total amount outstanding under the Company's unsecured revolving credit facility was $20.0 million and $602.0 million as of December 31, 2019 and 2018, respectively.

During the first four months of 2019, the Company increased the aggregate capacity of our unsecured revolving credit facility by $310.0 million to $4.9 billion.

In May 2019, the Company amended and extended our committed unsecured revolving credit facility whereby, among other things, the Company extended the final maturity date from May 5, 2022 to May 5, 2023 and, after giving effect to commitments that matured on May 5, 2019, increased the total revolving commitments to approximately $5.8 billion, with a 0.20% facility fee and bearing interest at a floating rate of LIBOR plus 1.05% per year. On July 31, 2019, the Company executed a commitment increase to the unsecured revolving credit facility, which increased the aggregate facility capacity by an additional $58.0 million. Lenders hold revolving commitments totaling approximately $5.5 billion that mature on May 5, 2023, commitments totaling $245.0 million that mature on May 5, 2022, commitments totaling $5.0 million that mature on May 5, 2021, and commitments totaling $92.7 million that mature on May 5, 2020.

During the year ended December 31, 2019, the Company entered into an uncommitted unsecured revolving credit facility with a total borrowing capacity of $175.0 million and a maturity date of October 18, 2020, bearing interest at a rate of LIBOR plus 0.75%. As of December 31, 2019, there were no outstanding amounts related to the uncommitted unsecured revolving credit facility.

In January 2020, the Company entered into an agreement to increase our revolving unsecured bank commitments by $125.0 million to approximately $6.0 billion.

Secured term financings

The Company funds some aircraft purchases through secured term financings. The Company's various consolidated entities will borrow through secured bank facilities to purchase an aircraft. The aircraft are then leased by the Company's entities to airlines. The Company may guarantee the obligations of the entities under the loan agreements. The loans may be secured by a pledge of the shares of the entities, the aircraft, the lease receivables, security deposits, maintenance reserves, or a combination thereof.

As of December 31, 2019, the outstanding balance on the Company's secured term facilities was $428.8 million and the Company had pledged 15 aircraft as collateral with a net book value of $890.7 million. The outstanding balance under the Company's secured term facilities as of December 31, 2019 was comprised of a $54.6 million fixed rate facility with an interest rate of 2.36% and $374.3 million of floating rate debt with interest rates ranging from LIBOR plus 0.80% to LIBOR plus 2.50%. As of December 31, 2019, the remaining maturities of all secured term facilities ranged from approximately 0.07 years to approximately 9.84 years.

As of December 31, 2018, the outstanding balance on the Company's secured term facilities was $371.2 million and the Company had pledged 18 aircraft as collateral with a net book value of $1.1 billion. The outstanding balance under our secured term facilities as of December 31, 2018 was comprised of $0.5 million fixed rate debt with an interest rate of 4.58% and $370.7 million floating rate debt, with interest rates ranging from LIBOR plus 1.15% to LIBOR plus 2.99%.

Export credit financings

As of December 31, 2019 and 2018, the Company had $31.6 million and $38.3 million in government guaranteed export credit financing outstanding, respectively.

In March 2013, the Company issued $76.5 million in secured notes due 2024 guaranteed by the Export-Import Bank. As of December 31, 2019, we have an aircraft which serve as collateral for the notes. The notes will mature on August 15, 2024 and bear interest at a rate of 1.617% per annum.

Maturities

Maturities of debt outstanding as of December 31, 2019 are as follows:


Years ending December 31,		(in thousands)
2020		$	1,405,118
2021			1,998,888
2022			2,711,600
2023			2,510,749
2024			1,558,029
Thereafter			3,536,911
Total		$	13,721,295