Debt and Other Obligations

Long-term debt

As of December 31, 2016, the Company held non public and public debt instruments. The Company's indebtedness includes the 2014 Framework Agreement, the 2015 Facility Agreements, 2015-1 EETCs and 2016 Facility Agreement described below.

2014 Framework Agreement

During 2014, the Company entered into a Framework Agreement, with a bank syndicate, which as of December 31, 2016, provided $379.0 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, 2016, the Company has taken delivery of all Airbus A320 and Airbus A321 aircraft financed through the Framework Agreement.

2015 Facility Agreements

During 2015, the Company entered into two Facility Agreements, which as of December 31, 2016, provided $185.0 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, 2016, 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 enhanced equipment trust certificates (EETCs) 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 are initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, are released and used to purchase equipment notes which are issued by the Company and secured by the Company's aircraft. Interest on the issued and outstanding equipment notes are payable semiannually on April 1 and October 1 of each year, which commenced on April 1, 2016, and principal on such equipment notes is scheduled for payment on April 1 and October 1 of certain years, which commenced 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, 2016, $538.1 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 3 Airbus A320 aircraft and 11 Airbus A321 aircraft. The remaining $38.5 million of escrowed proceeds held by the pass-through trusts were used to purchase equipment notes when the remaining new Airbus A321 aircraft was delivered in January 2017. Equipment notes that are issued are reported as debt on the Company's 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.

2016 Facility Agreement

In December 2016, the Company entered into a Facility Agreement, which will provide up to $106.0 million of debt financing for two Airbus A320 aircraft and one Airbus A321 aircraft. Each loan extended under the Facility Agreement is funded on or near the delivery date of each aircraft and is secured by a first-priority security interest on the individual aircraft. Each loan amortizes on a mortgage-style basis and has a 10-year term. Loans bear interest payable quarterly on a fixed-rate basis. The two Airbus A320 aircraft and one Airbus A321 aircraft under the Company's existing Facility Agreement are scheduled for delivery between March 2017 and April 2017.

Long-term debt is comprised of the following:



	As of December 31,				Year Ended December 31,
	2016		2015		2016		2015
	(in millions)				(weighted-average interest rates)
Fixed-rate senior term loans due through 2027	$	451.9	$	484.2	4.10	%	4.10	%
Fixed-rate junior term loans due through 2022	47.1		54.3		6.90	%	6.90	%
Fixed-rate class A enhanced equipment trust certificates due through 2028	409.8		95.8		4.10	%	4.03	%
Fixed-rate class B enhanced equipment trust certificates due through 2024	103.6		25.0		4.45	%	4.37	%
Long-term debt	$	1,012.4	$	659.3
Less current maturities	84.4		49.6
Less unamortized discount, net	30.6		13.0
Total	$	897.4	$	596.7

During the year ended December 31, 2016 and 2015, the Company made scheduled principal payments of $64.4 million and $25.4 million on its outstanding debt obligations, respectively.

At December 31, 2016, long-term debt principal payments for the next five years and thereafter are as follows:



	December 31, 2016
	(in millions)
2017	$	88.9
2018	83.1
2019	81.5
2020	79.7
2021	78.2
2022 and thereafter	601.0
Total debt principal payments	$	1,012.4

Interest Expense

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



	Year Ended December 31,
	2016		2015
	(in thousands)
Senior term loans	$	19,759	$	15,429
Junior term loans	3,568		2,997
Class A enhanced equipment trust certificates	11,509		494
Class B enhanced equipment trust certificates	3,243		140
Commitment fees	127		54
Amortization of deferred financing costs	3,435		1,165
Total	$	41,641	$	20,279

As of December 31, 2016 and 2015, the Company had a line of credit for $23.6 million and $18.6 million related to corporate credit cards. Respectively, the Company had drawn $9.9 million and $7.3 million as of December 31, 2016 and 2015, which is included in accounts payable.

As of December 31, 2016 and 2015, the Company had lines of credit with counterparties for derivatives and physical fuel delivery in the amount of $46.5 million and $38.0 million, respectively. As of December 31, 2016 and 2015, the Company had drawn $8.0 million and $6.9 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, 2016 and 2015, the Company did not have any outstanding fuel derivatives.