Debt and Other Obligations

Long-term debt

As of December 31, 2015, the Company held non public and public debt instruments. The Company's indebtedness includes the 2014 Framework Agreement, the 2015 Facility Agreements and the 2015-1 EETCs described below.

Framework Agreement

During 2014, the Company entered into a Framework Agreement, with a bank syndicate, which as of December 31, 2015, provided $379 million of debt financing for seven Airbus A320 aircraft and three Airbus A321 aircraft. Each loan extended under the Framework Agreement was funded on or about the delivery date of each aircraft and is secured by a first-priority security interest in the individual aircraft. Each loan amortizes on a mortgage-style basis, which requires quarterly payments, with senior loans having a 12-year term and junior loans having a 7-year term. Loans bear interest payable quarterly on a fixed-rate basis. As of December 31, 2015, the Company has taken delivery of all Airbus A320 and Airbus A321 aircraft financed through the Framework Agreement.

Facility Agreements

During 2015, the Company entered into two Facility Agreements, which as of December 31, 2015, provided $185 million of debt financing for five Airbus A320 aircraft. Each loan extended under the Facility Agreements was funded on or near the delivery date of each aircraft and was secured by a first-priority security interest on the individual aircraft. Each loan amortizes on a mortgage-style basis, which requires quarterly payments, with senior loans having a 12-year term and junior loans having a 7-year term. Loans bear interest payable quarterly on a fixed-rate basis. As of December 31, 2015, the Company has taken delivery of all Airbus A320 aircraft financed through the Facility Agreements.

2015-1 EETCs

In August 2015, the Company created two separate pass-through trusts, which issued approximately $576.6 million aggregate face amount of Series 2015-1 Class A and Class B EETCs with a blended interest rate of 4.15% per annum in connection with the financing of 12 new Airbus A321 aircraft and 3 new Airbus A320 aircraft. Each class of certificates represents a fractional undivided interest in the respective pass-through trusts and is not an obligation of the Company. The proceeds from the issuance of these certificates were initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, will be released and used to purchase equipment notes to be issued by the Company with respect to each such aircraft. The equipment notes will be secured by a security interest in such aircraft. Interest on the issued and outstanding equipment notes are payable semiannually on April 1 and October 1 of each year, commencing on April 1, 2016, and principal on such equipment notes is scheduled for payment on April 1 and October 1 of certain years, commencing on October 1, 2016. Issued and outstanding Series A and Series B equipment notes mature in April 2028 and April 2024, respectively, and accrue interest at a rate of 4.100% per annum and 4.450% per annum, respectively.

As of December 31, 2015, $120.8 million of the proceeds from the sale of the 2015-1 EETCs had been used to purchase equipment notes in connection with the financing of three Airbus A321 aircraft. The remaining $455.8 million of escrowed proceeds held by the pass-through trusts will be used to purchase equipment notes as the remaining 12 new aircraft are delivered. Equipment notes that are issued are reported as debt on the Company's condensed balance sheets.

The Company evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance. The Company determined that the pass-through trusts are VIEs and that it does not have a variable interest in the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate these pass-through trusts.

Long-term debt is comprised of the following:



	As of December 31,				Year Ended December 31,
	2015		2014		2015		2014
	(in millions)				(weighted-average interest rates)
Senior Term Loans due through 2027	$	484.2	$	132.0	4.10	%	4.26	%
Junior Term Loans due through 2022	54.3		16.0		6.90	%	6.94	%
Class A enhanced equipment trust certificates due through 2028	95.8		—		4.03	%	N/A
Class B enhanced equipment trust certificates due through 2024	25.0		—		4.37	%	N/A
Long-term debt	$	659.3	$	148.0
Less current maturities	49.6		10.4
Less unamortized discount, net	13.0		2.4
Total	$	596.7	$	135.2

During the year ended December 31, 2015, the Company made scheduled principal payments of $25.4 million on its outstanding debt obligations. During the year ended December 31, 2014, the Company did not make any debt payments.

At December 31, 2015, long-term debt principal payments for the next five years and thereafter are as follows:



	December 31, 2015
	(in millions)
2016	$	51.5
2017	49.0
2018	53.0
2019	54.2
2020	54.9
2021 and thereafter	396.7
Total debt principal payments	$	659.3

Interest Expense

Interest expense related to long-term debt consists of the following:



	Year Ended December 31,
	2015		2014
	(in thousands)
Senior term loans	$	15,429	$	738
Junior term loans	2,997		145
Class A enhanced equipment trust certificates	494		—
Class B enhanced equipment trust certificates	140		—
Commitment fees	54		685
Amortization of deferred financing costs	1,165		9
Total	$	20,279	$	1,577

In 2014, commitment fees were expensed within interest expense on the statement of operations. Subsequent to the Company's adoption of ASU No. 2015-03 (ASU 2015-03), "Interest-Imputation of Interest", effective January 1, 2015, commitment fees are presented on the balance sheet as a direct deduction from the related debt liability and amortized over the life of the debt instrument. The Company's senior and junior term loans had annual commitment fees, related to undisbursed loan amounts, of 0.75% and 1.25%, respectively, which were paid on a quarterly basis. As of December 31, 2014, the Company incurred $0.7 million in commitment fees related to seven Airbus A320 aircraft and three Airbus A321 aircraft delivered in 2014 and 2015.

As of December 31, 2015 and 2014, the Company had a line of credit for $18.6 million related to corporate credit cards. Respectively, the Company had drawn $7.3 million and $4.5 million as of December 31, 2015 and 2014, which is included in accounts payable.

As of December 31, 2015 and 2014, the Company had lines of credit with counterparties for fuel derivatives and physical fuel delivery in the amount of $38.0 million. As of December 31, 2015 and 2014, the Company had drawn $6.9 million and $9.3 million on these lines of credit, which is included in other current liabilities. The Company is required to post collateral for any excess above the lines of credit if the fuel derivatives are in a net liability position and make periodic payments in order to maintain an adequate undrawn portion for physical fuel delivery. As of December 31, 2015, there were no fuel derivatives and as of December 31, 2014, the Company did not hold any fuel derivatives with requirements to post collateral.