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Long-Term Debt and Other Borrowings (Tables)
 6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt

Long-term debt as of March 31, 2019 and September 30, 2018, consisted of the following (in thousands):

 

 

 

March 31,

 

 

September 30,

 

 

 

2019

 

 

2018

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

aircraft, due 2019(1)(2)

 

$

—

 

 

$

4,428

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

aircraft, due 2022(3)(4)

 

 

59,176

 

 

 

69,340

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

aircraft, due 2024(5)

 

 

66,565

 

 

 

72,438

 

Senior and subordinated notes payable to secured parties, collateralized

 

 

 

 

 

 

 

 

by the underlying aircraft, due 2027(6)

 

 

116,790

 

 

 

122,591

 

Notes payable to secured parties, collateralized by the underlying

 

 

 

 

 

 

 

 

aircraft, due 2028(7)

 

 

200,322

 

 

 

209,240

 

Senior and subordinated notes payable to secured parties, collateralized

 

 

 

 

 

 

 

 

by the underlying aircraft, due 2028(8)

 

 

160,170

 

 

 

167,269

 

Senior and subordinated notes payable to secured parties, collateralized

 

 

 

 

 

 

 

 

by the underlying aircraft, due 2022(17)

 

 

83,724

 

 

 

95,060

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

equipment, due 2022(9)

 

—

 

 

 

88,162

 

Senior and subordinated notes payable to secured parties, collateralized

 

 

 

 

 

 

 

 

by the underlying aircraft, due 2022(10)

 

 

55,473

 

 

 

63,403

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

equipment, due 2020(11)

 

 

2,488

 

 

 

3,318

 

Notes payable to financial institution due 2020(12)

 

 

3,344

 

 

 

4,360

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

equipment, due 2020(13)

 

 

10,723

 

 

 

14,971

 

Notes payable to financial institution due 2019(14)

 

 

1,369

 

 

 

5,896

 

Working capital draw loan, collateralized by certain flight equipment

 

 

 

 

 

 

 

 

and spare parts(15)

 

 

—

 

 

 

—

 

Other obligations due to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

equipment, due 2023(16)

 

 

9,144

 

 

 

9,731

 

Notes payable to financial institution, collateralized by the underlying

 

 

 

 

 

 

 

 

equipment, due 2024(18)

 

 

88,553

 

 

 

—

 

Total long-term debt

 

 

857,841

 

 

 

930,207

 

Less current portion

 

 

(147,114

)

 

 

(155,170

)

Less unamortized debt issuance costs

 

 

(13,871

)

 

 

(14,860

)

Long-term debt—excluding current portion

 

$

696,856

 

 

$

760,177

 

 

(1) 

In fiscal 2005, the Company financed five CRJ-900 aircraft with $118.0 million in debt. The debt bears interest at the monthly London Inter-bank Offered Rate ("LIBOR"), plus 3.00% 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 3.00% 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% (4.745% at March 31, 2019) 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% (4.445% to 9.745% at March 31, 2019) 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 5.00% 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 $151.0 million bear interest at monthly LIBOR plus 2.71% (5.205% at March 31, 2019) 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 $246.0 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 $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% (4.800% to 4.920% at March 31, 2019) 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% (9.745% at March 31, 2019) 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% (6.100% at March 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (7.100% at March 31, 2019) 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 monthly LIBOR plus 3.07% (5.670% at March 31, 2019) 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% (5.530% to 5.560% at March 31, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of March 31, 2019, 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% (5.900% at March 31, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of March 31, 2019, the Company was in compliance with this covenant.

(15) 

In fiscal 2016, the Company obtained a $35.0 million working capital draw loan, which terminates in August 2019. Interest is assessed on drawn amounts at one-month LIBOR plus 4.25% (6.745% at March 31, 2019). As of March 31, 2019, there were no borrowings outstanding under this facility.  The working capital draw loan is subject to an interest and rental coverage ratio covenant. As of March 31, 2019, 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 $67.3 million bear interest at the three-month LIBOR plus 3.50% (6.100% at March 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at three month LIBOR plus 7.50% (10.100% at March 31, 2019) and require quarterly principal and interest payments.

(18) 

In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (5.595% at March 31, 2019) and requires monthly principal and interest payments.
Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of March 31, 2019, and for each of the next five years are as follows (in thousands):

 

 

 

Total Principal

 

Periods Ending September 30,

 

Amount

 

Remainder of 2019

 

$

74,450

 

2020

 

 

146,227

 

2021

 

 

141,519

 

2022

 

 

132,705

 

2023

 

 

88,122

 

Thereafter

 

 

274,818

 

 

 

$

857,841