Debt Financing

6 Months Ended

Jun. 30, 2020

Debt Financing

Debt Financing

Note 3.  Debt Financing

The Company’s consolidated debt as of June 30, 2020 and December 31, 2019 (dollars in thousands):

	June 30,		December 31,
	2020		2019
Unsecured
Senior notes	$	13,509,411	$	12,357,811
Term financings		972,625		883,050
Revolving credit facility		—		20,000
Total unsecured debt financing		14,482,036		13,260,861
Secured
Term financings		298,552		428,824
Export credit financing		28,283		31,610
Total secured debt financing		326,835		460,434
Total debt financing		14,808,871		13,721,295
Less: Debt discounts and issuance costs		(169,826)		(142,429)
Debt financing, net of discounts and issuance costs	$	14,639,045	$	13,578,866

The Company’s secured obligations as of June 30, 2020 and December 31, 2019 are summarized below (dollars in thousands):

	June 30,		December 31,
	2020		2019
Nonrecourse	$	—	$	128,460
Recourse		326,835		331,974
Total secured debt financing	$	326,835	$	460,434
Number of aircraft pledged as collateral		12		15
Net book value of aircraft pledged as collateral	$	644,458	$	890,693

Senior unsecured notes (including Medium-Term Note Program)

As of June 30, 2020, the Company had $13.5 billion in senior unsecured notes outstanding. As of December 31, 2019, the Company had $12.4 billion in senior unsecured notes outstanding.

During the six months ended June 30, 2020, the Company issued approximately $2.3 billion in aggregate principal amount of Medium-Term Notes comprised of (i) $750.0 million due 2025 at a fixed rate of 2.30%, (ii) $650.0 million due 2030 at a fixed rate of 3.00% and (iii) $850.0 million due 2025 at a fixed rate of 3.375%.

During the quarter ended June 30, 2020, the Company repurchased $185.2 million in aggregate principal amount of Floating Rate Medium-Term Notes due 2021. The open market debt repurchases resulted in a gain of $13.6 million and is included in Aircraft sales, trading and other revenue in the Company’s Consolidated Income Statements.

Unsecured revolving credit facility

As of June 30, 2020, the Company did not have any amounts outstanding under its unsecured revolving credit facility. The total amount outstanding under the Company’s unsecured revolving credit facility was $20.0 million as of December 31, 2019.

The Company has an unsecured revolving credit facility with JPMorgan Chase Bank, N.A. as agent (the “Revolving Credit Facility”). During the six months ended June 30, 2020, the Company increased the aggregate capacity of the Revolving Credit Facility by $250.0 million. On May 5, 2020, commitments totaling $92.7 million of the Revolving Credit Facility matured. Lenders hold revolving commitments totaling approximately $5.5 billion that mature on May 5, 2023, commitments totaling $245.0 million that mature on May 5, 2022 and commitments totaling $5.0 million that mature on May 5, 2021. As of June 30, 2020, the aggregate capacity of the Revolving Credit Facility was approximately $6.0 billion.

As of June 30, 2020, borrowings under the Revolving Credit Facility will generally bear interest at either (a) LIBOR plus a margin of 1.05% per year or (b) an alternative base rate plus a margin of 0.05% per year, subject, in each case, to increases or decreases based on declines in the credit ratings for the Company’s debt. The Company is required to pay a facility fee of 0.20% per year (also subject to increases or decreases based on declines in the credit ratings for the Company’s debt) in respect of total commitments under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility are used to finance the Company’s working capital needs in the ordinary course of business and for other general corporate purposes.

Secured debt financing

In June 2020, the Company entered into an amendment to its secured warehouse facility to extend the final maturity to June 2021. The facility will continue to bear a floating interest rate of LIBOR plus 2.00%. As part of the amendment, the credit facility was converted to full recourse against the Company and excess cash collateral was released. The outstanding balance on the Company’s secured warehouse facility was $103.1 million and $128.5 million as of June 30, 2020 and December 31, 2019, respectively.

As of June 30, 2020, the outstanding balance on the Company’s secured debt financings, including its secured warehouse facility and its export credit financing, was $326.8 million and it had pledged 12 aircraft as collateral with a net book value of $644.5 million. As of December 31, 2019, the outstanding balance on the Company’s secured debt

financings, including its secured warehouse facility and its export credit financing, was $460.4 million and it had pledged 15 aircraft as collateral with a net book value of $890.7 million.

Maturities

Maturities of debt outstanding as of June 30, 2020 are as follows (in thousands):

Years ending December 31,
2020	$	295,789
2021		1,948,697
2022		2,730,561
2023		2,502,123
2024		1,544,791
Thereafter		5,786,910
Total	$	14,808,871