Long-Term Debt, Financing Leases and Other Borrowings (Tables)

3 Months Ended

Dec. 31, 2019

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

	December 31,			September 30,
	2019			2019
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2022⁽¹⁾⁽²⁾	$	45,019		$	49,795
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2024⁽³⁾		57,867			60,761
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2027⁽⁴⁾		107,940			110,912
Notes payable to secured parties, collateralized by the underlying
aircraft, due 2028⁽⁵⁾		191,168			191,168
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2028⁽⁶⁾		149,283			152,945
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2022⁽⁷⁾		65,984			71,998
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2022⁽⁸⁾		43,136			47,309
Notes payable to financial institution, collateralized by the underlying
equipment, due 2020⁽⁹⁾		1,244			1,659
Notes payable to financial institution due 2020⁽¹⁰⁾		1,822			2,329
Notes payable to financial institution, collateralized by the underlying
equipment, due 2020⁽¹¹⁾		5,358			6,962
Other obligations due to financial institution, collateralized by the underlying
equipment, due 2023⁽¹²⁾		8,162			8,530
Notes payable to financial institution, collateralized by the underlying
equipment, due 2024⁽¹³⁾		76,037			80,153
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2023⁽¹⁴⁾		61,250			65,625
Notes payable to financial institution due 2023 ⁽¹⁵⁾		7,503			8,000
Revolving Credit Facility ⁽¹⁶⁾		—			—
Gross long-term debt, including current maturities		821,773			858,145
Less unamortized debt issuance costs		(14,667	)		(14,822	)
Net long-term debt, including current maturities		807,106			843,323
Less current portion		(166,089	)		(165,900	)
Net long-term debt	$	641,017		$	677,423

⁽¹⁾	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% (4.16% at December 31, 2019) and requires monthly principal and interest payments.

⁽²⁾

In fiscal 2014, the Company financed ten 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% (3.86% to 9.16% at December 31, 2019) and requires monthly principal and interest payments. In fiscal 2018, the Company repaid $40.0 million related to four CRJ-900 aircraft.

⁽³⁾	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.

⁽⁴⁾

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% (4.62% at December 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.

⁽⁵⁾	In fiscal 2016, the Company financed ten 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.

⁽⁶⁾

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% (3.96% to 4.08% at December 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.

⁽⁷⁾

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% (5.26 % at December 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable of $29.8 million bear interest at three month LIBOR plus 7.50% (9.26% at December 31, 2019) and require quarterly principal and interest payments.

⁽⁸⁾

InDecember 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% (5.26% at December 31, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (6.26% at December 31, 2019) and require quarterly principal and interest payments.

⁽⁹⁾	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.

⁽¹⁰⁾	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% (4.98% at December 31, 2019) and requires quarterly principal and interest payments.

⁽¹¹⁾

In fiscal 2016-2019, the Company financed certain flight equipment maintenance costs with $26.1 million in debt. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% to 3.21% (4.69% to 4.97% at December 31, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of December 31, 2019, the Company was in compliance with this covenant.

¹²⁾	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.

⁽¹³⁾	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% (5.01% at December 31, 2019) and requires monthly principal and interest payments.

⁽¹⁴⁾

In June 2019, the Company financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% (6.91% at December 31, 2019) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1^st quarter, 2020 due to United Airlines extension of CRJ-700.

⁽¹⁵⁾

On September 27,2019, the Company financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% (6.91% at December 31, 2019) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1^st quarter, 2020 due to United Airlines extension of CRJ-700.

⁽¹⁶⁾	On September 25, 2019, the company extended the term on their $35.0 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%.

Schedule of Principal Maturities of Long-term Debt

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

Periods Ending December 31,	Total Principal
Remainder of 2020	$	166,089
2021		160,084
2022		140,139
2023		96,722
2024		62,605
Thereafter		196,134
	$	821,773