Borrowings from Secured and Unsecured Debt Financings

12 Months Ended

Dec. 31, 2019

Borrowings from Secured and Unsecured Debt Financings

The outstanding amounts of our secured and unsecured term debt financings were as follows:



	At December 31, 2019						At December 31, 2018
Debt Obligation	Outstanding Borrowings			Number of Aircraft	Interest Rate	Final Stated Maturity	Outstanding Borrowings
Secured Debt Financings:
ECA Financings⁽¹⁾	$	147,644		6	3.02% to 3.96%	12/03/21 to 11/30/24	$	189,080
Bank Financings⁽²⁾	993,593			35	3.13% to 4.63%	06/17/23 to 01/19/26	619,715
Less: Debt Issuance Costs	(11,892		)				(10,338		)
Total secured debt financings, net of debt issuance costs and discounts	1,129,345			41			798,457
Unsecured Debt Financings:
Senior Notes due 2019⁽³⁾	—						500,000
Senior Notes due 2020	300,000				7.625%	04/15/20	300,000
Senior Notes due 2021	500,000				5.125%	03/15/21	500,000
Senior Notes due 2022	500,000				5.500%	02/15/22	500,000
Senior 5.00% Notes due 2023	500,000				5.000%	04/01/23	500,000
Senior 4.40% Notes due 2023	650,000				4.400%	09/25/23	650,000
Senior Notes due 2024	500,000				4.125%	05/01/24	500,000
Senior Notes due 2026	650,000				4.250%	06/15/26	—
Unsecured Term Loan	215,000				3.359%	03/07/22 to 03/07/24	120,000
Revolving Credit Facilities	150,000				3.21% to 3.41%	12/27/21 to 06/27/22	425,000
Less: Debt issuance costs and discounts	(32,509		)				(32,104		)
Total unsecured debt financings, net of debt issuance costs and discounts	3,932,491						3,962,896
Total secured and unsecured debt financings, net of debt issuance costs and discounts	$	5,061,836					$	4,761,353

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(1)	The borrowings under these financings at December 31, 2019 have a weighted-average rate of interest of 3.58%.


(2)	The borrowings under these financings at December 31, 2019 have a weighted-average fixed rate of interest of 3.82%.


(3)	Repaid on July 15, 2019.

Secured Debt Financing:

Bank Financings

On May 1, 2019, we entered into a full recourse $320,000 secured bank financing with BNP Paribas and Société Générale in relation to eight Airbus A320-200neo aircraft on lease with a customer in Asia. This financing bears interest at a fixed rate of 3.61% and matures in September 2024. In addition, on May 1, 2019, we entered into a full recourse $120,000 secured bank financing with Crédit Agricole in relation to three Airbus A320-200neo aircraft on lease with a customer in Asia. This financing bears interest at a fixed rate of 3.13% and matures in March 2025.

On June 26, 2019, we amended and restated the original loan agreement, dated October 11, 2018, with National Bank of Australia to include an additional $40,000 in financing for two Boeing 737-800 aircraft on lease with a customer in North America. This financing bears interest at a fixed rate of 3.14% and matures in December 2024.

Unsecured Debt Financings:

Senior Notes due 2026

On June 13, 2019, Aircastle issued $650,000 aggregate principal amount of Senior Notes due 2026 (the “Senior Notes due 2026”) at an issue price of 99.515%. The Senior Notes due 2026 will mature on June 15, 2026 and bear interest at the rate of 4.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2019. Interest accrues on the Senior Notes due 2026 from June 13, 2019.

Prior to April 15, 2026, we may redeem all or part of the aggregate principal amount of the Senior Notes due 2026 at any time at a redemption price equal to the greater of (a) 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest thereon to, but not including, the redemption date and (b) the sum of the present values of 100% of the principal amount of the notes redeemed and the remaining scheduled payments of interest on the notes from the redemption date through April 15, 2026 (computed using a discount rate equal to the Treasury Rate (as defined in the indenture governing the Senior Notes due 2026) as of such redemption date plus 0.35%, plus accrued and unpaid interest thereon to, but not including, the redemption date). In addition, on or after April 15, 2026, we may redeem all or part of the aggregate principal amount of the Senior Notes due 2026 at a redemption price equal to 100%, plus accrued and unpaid interest thereon to, but not including, the redemption date. If the Company undergoes a change of control (as defined in the indenture governing the Senior Notes due 2026) and, as a result of the change of control, the rating of the Senior Notes due 2026 is downgraded to below an investment grade rating by certain rating agencies in the manner specified in the indenture governing the Senior Notes due 2026, it must offer to repurchase the Senior Notes due 2026 at a price of 101% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date. The Senior Notes due 2026 are not guaranteed by any of the Company's subsidiaries or any third-party.

The net proceeds from the issuance were used to repay amounts drawn under our existing revolving credit facility and to redeem the balance of our 6.25% Senior Notes due 2019, including accrued interest of $3,733 and call premium of $7,183, on July 15, 2019.

Unsecured Term Loan

On February 27, 2019, we entered into an aggregate $215,000 floating rate loan commitment with Development Bank of Japan Inc. and certain other banks (the “Unsecured Term Loan”). This loan is split into two tranches: Tranche A for $60,000 with a three-year term; and Tranche B for $155,000 with a five-year term. The loan contains a $750,000 minimum net worth covenant, along with other customary provisions similar to our revolving credit facilities. This loan was funded in March 2019.

The new Unsecured Term Loan replaced our existing term loan of $120,000 that matured on April 28, 2019.

Revolving Credit Facility

On December 27, 2018, we entered into a $250,000 three-year, unsecured revolving credit facility with a group of banks based in Asia. This new facility can be increased to a maximum of $350,000. On January 25, 2019, we increased the facility by $30,000 to $280,000. On June 20, 2019, we further increased the facility by $20,000 to $300,000. The facility bears interest at a rate of LIBOR plus 1.50% and matures in December 2021. The facility contains provisions similar to our existing credit facility, including a $750,000 minimum net worth covenant.

As a condition to this new facility, on January 9, 2019, we terminated our existing $135,000 revolving credit facility with a group of banks based in Asia.

At December 31, 2019, we had $150,000 outstanding under our revolving credit facilities and had $950,000 available.

Maturities of the secured and unsecured debt financings over the next five years and thereafter are as follows:



Year Ending December 31,	Amount
2020	$	429,324
2021	734,330
2022	739,934
2023	1,417,837
2024	981,886
Thereafter	802,926
Total	$	5,106,237

As of December 31, 2019, we were in compliance with all applicable covenants in our financings.