Debt Financing

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt Financing

Debt Financing

The Company’s consolidated debt as of June 30, 2023 and December 31, 2022 is summarized below:

	June 30, 2023		December 31, 2022
	(in thousands)
Unsecured
Senior unsecured securities	$	17,202,069	$	17,095,116
Revolving credit facility	1,000,000		1,020,000
Term financings	668,300		582,950
Total unsecured debt financing	18,870,369		18,698,066
Secured
Export credit financing	112,184		11,646
Term financings	107,133		113,717
Total secured debt financing	219,317		125,363
Total debt financing	19,089,686		18,823,429
Less: Debt discounts and issuance costs	(193,893)		(182,366)
Debt financing, net of discounts and issuance costs	$	18,895,793	$	18,641,063

As of June 30, 2023, 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 interest coverage ratio.

All of the Company’s secured obligations as of June 30, 2023 and December 31, 2022 are recourse in nature.

Senior unsecured securities (including Medium-Term Note Program)

As of June 30, 2023, the Company had $17.2 billion in senior unsecured securities outstanding. As of December 31, 2022, the Company had $17.1 billion in senior unsecured securities outstanding.

Public unsecured bonds. During the six months ended June 30, 2023, the Company issued $700.0 million in aggregate principal amount of 5.30% Medium-Term Notes due 2028.

Private placement securities. During the six months ended June 30, 2023, the Company, through a trust, issued $600.0 million in aggregate principal amount of 5.85% trust certificates due 2028 in a Sukuk financing. If the Company fails to meet its obligations under the Sukuk financing, the sole rights of each of the holders of the trust certificates will be against the Company to perform its obligations under the arrangements to which it is a party.

Syndicated unsecured revolving credit facility

As of June 30, 2023 and December 31, 2022, the Company had $1.0 billion, outstanding under its unsecured revolving credit facility (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.

During the second quarter of 2023, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2026 to May 5, 2027 and amended the total revolving commitments thereunder to approximately $7.2 billion as of May 5, 2023. The amended Revolving Credit Facility also decreased the SOFR credit spread adjustment applicable to borrowings for all interest periods. As of June 30, 2023, borrowings under the Revolving Credit Facility accrue interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05% per year. The Company is required to pay a facility fee of 0.20% per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to changes in the Company’s credit ratings.

As of August 3, 2023, lenders held revolving commitments totaling approximately $6.8 billion that mature on May 5, 2027, commitments totaling $320.0 million that mature on May 5, 2026, and commitments totaling $32.5 million that mature on May 5, 2025.

Other debt financings

From time to time, the Company enters into other debt financings such as unsecured revolving credit facilities, unsecured term financings and secured term financings, including export credit.

During the quarter ended June 30, 2023, the Company entered into a $650.0 million term loan. Under the terms of the loan agreement, the Company has the ability to set the funding date of the loan; however, the loan must be funded by November 2023. Once funded, the term loan bears interest at a floating rate of Term SOFR plus a credit spread adjustment of 0.10% plus 1.4% and has a final maturity on November 24, 2026. This term loan contains customary covenants and events of default consistent with the Company’s Revolving Credit Facility. In July 2023, the Company entered into a new lender supplement to increase the total term loan to $725.0 million. As of August 3, 2023, the Company had no borrowings outstanding under the term loan.

In addition, during the quarter ended June 30, 2023, the Company issued $112.2 million in secured notes due 2034 guaranteed by United Kingdom Export Finance (“UKEF”), the UK government’s export credit agency. The notes will mature on October 6, 2034 and will bear interest at a floating rate of three-month SOFR plus 0.42%. The Company pledged one aircraft as collateral in connection with this transaction.

As of June 30, 2023, the outstanding balance on other debt financings was $887.6 million and the Company had pledged three aircraft as collateral with a net book value of $318.2 million. As of December 31, 2022, the outstanding balance on other debt financings was $708.3 million and the Company had pledged three aircraft as collateral with a net book value of $212.1 million.

Maturities

Maturities of debt outstanding as of June 30, 2023 are as follows (in thousands):

Years ending December 31,
2023	$	1,300,288
2024	2,946,128
2025	2,400,016
2026	3,621,710
2027	3,787,044
Thereafter	5,034,500
Total	$	19,089,686