Notes Payable and Accrued Interest

12 Months Ended

Dec. 31, 2013

Notes Payable and Accrued Interest [Abstract]

Notes Payable and Accrued Interest

6.Notes Payable and Accrued Interest

At December 31, 2013 and December 31, 2012, the Company’s notes payable and accrued interest consisted of the following:

	December 31,		December 31,
	2013		2012
Credit Facility principal	$	77,500,000	$	67,800,000
Credit Facility accrued interest		27,300		65,700
	$	77,527,300	$	67,865,700

In March 2013, the Company’s Credit Facility (the “Credit Facility”) provided by a syndicate of banks was increased from $90 million to $130 million and the maturity date was extended to September 30, 2015. The Credit Facility is secured by all of the assets of the Company, including its aircraft and engine portfolio.

The Company borrowed $19,000,000 and $19,900,000 during 2013 and 2012, respectively, under the Credit Facility.  The Company repaid $9,300,000 and $17,300,000 of its Credit Facility debt during 2013 and 2012, respectively.

In November 2013, the Company obtained a waiver of compliance with a customer concentration covenant under its Credit Facility agreement at the September 30, 2013 and December 31, 2013 calculation dates.  The higher than anticipated concentration resulted in part from the Company recognizing operating lease revenues from certain lessees on a cash basis, as collectability was not reasonably assured.  The Company was in compliance with all other covenants under the Credit Facility agreement at December 31, 2013, and was in compliance with all covenants at December 31, 2012.

The unused amount of the Credit Facility was $52,500,000 and $22,200,000 as of December 31, 2013 and December 31, 2012, respectively; however, the amount available at December 31, 2012 was limited to $1,100,000 due to borrowing base limitations.  There were no such limitations at December 31, 2013.

The weighted average interest rate on the Credit Facility was 3.94% and 4.00% at December 31, 2013 and December 31, 2012, respectively.