Long-Term Debt and Other Borrowings (Tables)

12 Months Ended

Sep. 30, 2018

Long-term debt as of September 30, 2018 and 2017, consisted of the following (in thousands):

	September 30,			September 30,
	2018			2017
Notes payable to financial institution, collateralized by the underlying aircraft, due 2019⁽¹⁾⁽²⁾	$	4,428		$	58,254
Notes payable to financial institution, collateralized by the underlying aircraft, due 2022⁽³⁾⁽⁴⁾		69,340			113,611
Notes payable to financial institution, collateralized by the underlying aircraft, due 2024⁽⁵⁾		72,438			82,776
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027⁽⁶⁾		122,591			137,028
Notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁷⁾		209,240			226,399
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁸⁾		167,269			181,115
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽¹⁷⁾		95,060			—
Notes payable to financial institution, collateralized by the underlying equipment, due 2022⁽⁹⁾		88,162			93,031
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽¹⁰⁾		63,403			—
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽¹¹⁾		3,318			4,976
Notes payable to financial institution due 2020⁽¹²⁾		4,360			6,390
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽¹³⁾		14,971			9,158
Notes payable to financial institution due 2019⁽¹⁴⁾		5,896			18,530
Working capital draw loan, collateralized by certain flight equipment and spare parts⁽¹⁵⁾		—			25,650
Other obligations due to financial institution, collateralized by the underlying equipment, due 2023⁽¹⁶⁾		9,731			—
Total long-term debt		930,207			956,918
Less current portion		(155,170	)		(140,466	)
Less unamortized debt issuance costs		(14,860	)		(12,578	)
Long-term debt—excluding current portion	$	760,177		$	803,874

⁽¹⁾	In fiscal 2005, the Company financed five CRJ-900 aircraft with $118 million in debt. The debt bears interest at the monthly London InterBank Offered Rate (“LIBOR”), plus 3% (5.261% at September 30, 2018) and requires monthly principal and interest payments.

⁽²⁾	In fiscal 2004, the Company financed five CRJ-700 and nine CRJ 900 aircraft with $254.7 million in debt. The debt bears interest at the monthly LIBOR plus 3% (5.261% at September 30, 2018) and requires monthly principal and interest payments.

⁽³⁾	In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (4.511% at September 30, 2018) and requires monthly principal and interest payments.

⁽⁴⁾	In fiscal 2014, the Company financed 10 CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus a spread ranging from 1.95% to 7.25% (4.211% to 9.511% at September 30, 2018) and requires monthly principal and interest payments.

⁽⁵⁾	In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5% and requires monthly principal and interest payments.

⁽⁶⁾

In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151 million bear interest at monthly LIBOR plus 2.71% (4.971% at September 30, 2018) and require monthly principal and interest payments. The subordinated notes payable are noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes.

⁽⁷⁾	In fiscal 2016, the Company financed 10 E-175 aircraft with $246 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments.

⁽⁸⁾

In fiscal 2016, the Company financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% (4.598% to 4.718% at September 30, 2018) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments.

⁽⁹⁾	In fiscal 2017, the Company financed certain flight equipment with $99.1 million in debt. The debt bears interest at the monthly LIBOR (rounded to the nearest 16th) plus 7.25% (9.511% at September 30, 2018) and requires monthly principal and interest payments.

⁽¹⁰⁾

In December 2017, the Company refinanced nine CRJ-900 aircraft with $74.9 million in debt. The senior notes payable of $46.9 million bear interest at the three-month LIBOR plus 3.50% (5.898% at September 30, 2018) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (6.898% at September 30, 2018) and require quarterly principal and interest payments.

⁽¹¹⁾	In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and requires monthly principal and interest payments.

⁽¹²⁾	In fiscal 2015 and 2016, the Company financed certain flight equipment maintenance costs with $10.2 million in debt. The debt bears interest at the three-month LIBOR plus 3.07% (5.468% at September 30, 2018) and requires quarterly principal and interest payments.

⁽¹³⁾

In fiscal 2016 and 2017, the Company financed certain flight equipment maintenance costs with $11.9 million in debt. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% to 2.96% (5.328% to 5.358% at September 30, 2018) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of September 30, 2018, the Company was in compliance with this covenant.

⁽¹⁴⁾

In fiscal 2017, the Company financed certain flight equipment maintenance costs with $25 million in debt. The debt bears interest at the three-month LIBOR plus 3.30% (5.698% at September 30, 2018) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of September 30, 2018, the Company was in compliance with this covenant.

⁽¹⁵⁾

In fiscal 2016, the Company obtained a $35 million working capital draw loan, which terminates in August 2019. Interest is assessed on drawn amounts at one-month LIBOR plus 4.25% (6.511% at September 30, 2018). The line was drawn upon during fiscal 2017. The working capital draw loan is subject to an interest and rental coverage ratio covenant. As of September 30, 2018, the Company was in compliance with this covenant.

⁽¹⁶⁾	In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments.

⁽¹⁷⁾

In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $65.8 million bear interest at the three-month LIBOR plus 3.50% (5.898% at September 30, 2018) and require quarterly principal and interest payments. The subordinated notes payable bear interest at three-month LIBOR plus 7.50% (9.898% at September 30, 2018) and require quarterly principal and interest payments.

Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of September 30, 2018, and for each of the next five years are as follows (in thousands):

	Total Principal
	Amount
2019	$	155,170
2020		150,092
2021		146,067
2022		141,917
2023		69,232
Thereafter		267,729
	$	930,207