Debt Financing

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt Financing

Debt Financing

The Company’s consolidated debt as of December 31, 2021 and 2020 is summarized below:

	December 31, 2021		December 31, 2020
	(in thousands)
Unsecured
Senior notes	$	16,892,058	$	15,583,544
Term financings	167,000		811,550
Total unsecured debt financing	17,059,058		16,395,094
Secured
Term financings	126,660		276,032
Export credit financing	18,301		24,955
Total secured debt financing	144,961		300,987
Total debt financing	17,204,019		16,696,081
Less: Debt discounts and issuance costs	(181,539)		(177,743)
Debt financing, net of discounts and issuance costs	$	17,022,480	$	16,518,338

At December 31, 2021, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including minimum consolidated shareholders’ equity, minimum consolidated unencumbered assets, and an interest coverage ratio test.

The Company’s secured obligations as of December 31, 2021 and 2020 are summarized below:

	December 31, 2021		December 31, 2020
	(in thousands, except for number of aircraft)
Nonrecourse	$	—	$	—
Recourse	144,961		300,987
Total	$	144,961	$	300,987
Number of aircraft pledged as collateral	3		12
Net book value of aircraft pledged as collateral	$	222,211	$	628,674

Senior unsecured notes (including Medium-Term Note Program)

As of December 31, 2021, the Company had $16.9 billion in aggregate principal amount of senior unsecured notes outstanding with remaining terms ranging from less than one month to 8.92 years and bearing interest at fixed rates ranging from 0.70% to 4.625%, with two notes bearing interest at a floating rate of three-month LIBOR plus 0.35% and a floating rate of LIBOR plus 1.125%. As of December 31, 2020, the Company had $15.6 billion in aggregate principal amount of senior unsecured notes outstanding bearing interest at fixed rates ranging from 2.25% to 4.625%, with one note bearing interest at a floating rate of three-month LIBOR plus 0.67% and one note bearing interest at a floating rate of LIBOR plus 1.125%.

During the year ended December 31, 2021, the Company issued $3.7 billion in aggregate principal amount of Medium-Term Notes comprised of (i) $750.0 million in aggregate principal amount of 0.70% Medium-Term Notes due 2024, (ii) $1.2 billion in aggregate principal amount of 1.875% Medium-Term Notes due 2026, (iii) $600.0 million in aggregate principal amount of Medium-Term Notes due 2022 bearing interest at a floating rate of three-month LIBOR plus 0.35%, (iv) $600.0 million in aggregate principal amount of 0.80% Medium-Term Notes due 2024, and (v) $500.0 million in aggregate principal amount of 2.10% Medium-Term Notes due 2028.

In January 2022, the Company issued $750.0 million in aggregate principal amount of Medium term notes due 2027 bearing interest at a fixed rate of 2.20% and $750.0 million in aggregate principal amount of Medium term notes due 2032 bearing interest at a fixed rate of 2.875%.

Unsecured revolving credit facility

As of December 31, 2021 and December 31, 2020, the Company did not have any amounts outstanding under its unsecured revolving credit facility (the “Revolving Credit Facility”).    

Borrowings under the Revolving Credit Facility accrue 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 or improvements 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 or improvements 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.

In 2021, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2023 to May 5, 2025. In addition, the Company executed four new lender supplements to the Revolving Credit Facility. After giving effect to the amendment and the new lender supplements, the total revolving commitments increased to approximately $6.8 billion, representing an increase of 13.3% from December 31, 2020. As of December 31, 2021, lenders held revolving commitments totaling approximately $6.1 billion that mature on May 5, 2025, commitments totaling $575.0 million that mature on May 5, 2023 and commitments totaling $105.0 million that mature on May 5, 2022. The amended Revolving Credit Facility also added benchmark replacement language with respect to LIBOR largely based on Alternative Reference Rates Committee LIBOR fallback language and amended certain financial maintenance covenants, including removing the maximum consolidated leverage ratio covenant, increasing the required level for minimum consolidated shareholders’ equity and removing the mechanism for suspending the minimum interest coverage ratio if certain debt ratings are met.

Other debt financings

From time to time, we enter into other debt financings such as unsecured term financings and secured term financings, including export credit. As of December 31, 2021, the remaining maturities of all other debt financings ranged from less than three months to approximately 7.8 years. The outstanding balance on other debt financings was $312.0 million and $1.1 billion as of December 31, 2021 and 2020, respectively.

Maturities

Maturities of debt outstanding as of December 31, 2021 are as follows:

	(in thousands)
Years ending December 31,
2022	$	2,133,882
2023	2,490,951
2024	2,892,276
2025	2,313,889
2026	3,456,845
Thereafter	3,916,176
Total	$	17,204,019