LONG-TERM DEBT

9 Months Ended

Sep. 30, 2021

Long-term debt obligations on the condensed consolidated balance sheet (in millions):


	September 30, 2021			December 31, 2020
Fixed-rate notes payable due through 2029	$	169		$	198
Fixed-rate PSP notes payable due through 2031	600			290
Fixed-rate EETC payable due through 2025 & 2027	1,058			1,174
Variable-rate notes payable due through 2029	843			1,866
Less debt issuance costs and unamortized debt discount	(20)			(33)
Total debt	2,650			3,495
Less current portion	425			1,138
Long-term debt, less current portion	$	2,225		$	2,357

Weighted-average fixed-interest rate	3.6		%	4.3		%
Weighted-average variable-interest rate	1.2		%	1.9		%

Approximately $539 million of the Company's total variable-rate notes payable are effectively fixed via interest rate swaps at September 30, 2021, resulting in an effective weighted-average interest rate for the full debt portfolio of 3.3%.

During the nine months ended September 30, 2021, the Company issued $363 million of debt, comprised of $311 million of unsecured loans from the PSP and $54 million in proceeds from issuance of debt. Debt proceeds were offset by $1.2 billion in

debt payments. Included within total debt payments is the full repayment of the $135 million loan from the U.S. Treasury made available under the CARES Act, $363 million outstanding balance on two credit facilities, and prepayment of the $425 million 364-day term loan facility.

The $600 million PSP notes are unsecured senior term loans with a 10-year term, bearing an interest rate of 1% in years 1 through 5, and an interest rate equal to the Secured Overnight Financing Rate (SOFR) plus 2% in years 6 through 10. The PSP notes are prepayable at par without penalty.

CARES Act

In 2020, the Company finalized an agreement with the Treasury to obtain up to $1.9 billion via a secured term loan facility. Obligations under the loan agreement were secured by assets related to, and revenues generated by, Alaska's Mileage PlanTM frequent flyer program, as well as by 30 aircraft and 15 spare engines. In 2020, the Company drew $135 million under the agreement, which was used for general corporate purposes and certain operating expenses in accordance with the terms and conditions of the loan agreement and the applicable provisions of the CARES Act. The full balance was repaid in the second quarter of 2021. In accordance with the related agreement, the facility terminated at the time of payment.

Debt Maturity

At September 30, 2021 long-term debt principal payments for the next five years and thereafter are as follows (in millions):


	Total
Remainder of 2021	$	112
2022	371
2023	334
2024	240
2025	261
Thereafter	1,352
Total	$	2,670

Bank Lines of Credit

Alaska has three credit facilities totaling $486 million as of September 30, 2021. One of the credit facilities for $150 million expires in March 2022 and is secured by certain accounts receivable, spare engines, spare parts and ground service equipment. In October 2021, the expiry of this facility was extended to March 2025. The second credit facility for $250 million expires in June 2024 and is secured by aircraft. These two facilities have variable interest rates based on LIBOR plus a specified margin. A third credit facility for $86 million expires in June 2022 and is secured by aircraft.

Alaska has secured letters of credit against the third facility, but has no plans to borrow using either of the other two facilities. All credit facilities have a requirement to maintain a minimum unrestricted cash and marketable securities balance of $500 million. Alaska was in compliance with this covenant at September 30, 2021.