Note 4 - Long-Term Debt

3 Months Ended

Mar. 31, 2013

Note 4 — Long-Term Debt

Long-term debt consisted of the following:

	As of March 31, 2013		As of December 31, 2012


Senior secured term loan facility, interest at LIBOR plus 4.25% with LIBOR floor of 1.5%, due March 2017	$	122,089	$	122,376
Notes payable, secured by aircraft, interest at 4.65%, due July 2016		11,851		12,668
Notes payable, secured by aircraft, interest at 4.95%, due October 2015		4,680		5,102
Notes payable, secured by aircraft, interest at 6.28%, due March 2015		3,717		4,150
Notes payable, secured by aircraft, interest at 6.26%, due August 2014		5,664		6,556
Total long-term debt		148,001		150,852
Less current maturities		11,873		11,623
Long-term debt, net of current maturities	$	136,128	$	139,229

Senior Secured Term Loan Facility

In March 2011, the Company borrowed $125,000 under a senior secured term loan facility (the “Term Loan”). The Term Loan matures in March 2017, bears interest based on the London Interbank Offered Rate (“LIBOR”) or prime rate with interest payable quarterly or more frequently until maturity and includes a LIBOR floor of 1.5%. The Term Loan contains restrictions on future borrowing, provides for maximum annual capital expenditures and contains other affirmative and negative covenants. In addition to quarterly principal payments equal to 0.25% of the initial loan, the Term Loan also provides for mandatory and optional prepayment provisions.

The mandatory prepayment provisions are associated with cash proceeds from the sale of certain assets (which are not reinvested), cash proceeds from the issuance or incurrence of indebtedness for money borrowed in violation of the covenants in the Term Loan, cash proceeds from insurance or condemnation awards (which are not reinvested) and for 25% of the Company’s excess cash flow (as defined in the Term Loan) if the Company’s leverage ratio exceeds 1.5:1 as of the end of any year. In the event the Company does not reinvest the cash proceeds from the sale of certain assets or from insurance or condemnation awards or if the Company incurs indebtedness in violation of the covenants in the Term Loan, the prepayment will be due within three business days following the date of the event requiring the prepayment. The prepayment associated with a failure to meet the leverage ratio test would be payable within a specified number of days after the end of the year for the covenant calculation.

As of March 31, 2013, management believes the Company is in compliance with all covenants under the Term Loan and no events had occurred which would have required any prepayment of the debt.