Long-Term Debt and Other Borrowings (Tables)

12 Months Ended

Sep. 30, 2019

Long-term debt as of September 30, 2019 and 2018, consisted of the following (in thousands):

	September 30,			September 30,
	2019			2018
Notes payable to financial institution, collateralized by the underlying aircraft, due 2019⁽¹⁾⁽²⁾	$	—		$	4,428
Notes payable to financial institution, collateralized by the underlying aircraft, due 2022⁽³⁾⁽⁴⁾		49,795			69,340
Notes payable to financial institution, collateralized by the underlying aircraft, due 2024⁽⁵⁾		60,761			72,438
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027⁽⁶⁾		110,912			122,591
Notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁷⁾		191,168			209,240
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁸⁾		152,945			167,269
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽¹⁶⁾		71,998			95,060
Notes payable to financial institution, collateralized by the underlying equipment, due 2022⁽⁹⁾		—			88,162
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽¹⁰⁾		47,309			63,403
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽¹¹⁾		1,659			3,318
Notes payable to financial institution due 2020⁽¹²⁾		2,329			4,360
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽¹³⁾		6,962			14,971
Notes payable to financial institution due 2019⁽¹⁴⁾		—			5,896
Other obligations due to financial institution, collateralized by the underlying equipment, due 2023⁽¹⁵⁾		8,530			9,731
Notes payable to financial institution, collateralized by the underlying equipment, due 2024⁽¹⁷⁾		80,153			—
Notes payable to financial institution, collateralized by the underlying aircraft, due 2023⁽¹⁸⁾		65,625			—
Notes payable to financial institution due 2023 ⁽¹⁹⁾		8,000			—
Total long-term debt		858,145			930,207
Less current portion		(165,900	)		(155,170	)
Less unamortized debt issuance costs		(14,822	)		(14,860	)

Long-term debt—excluding current portion	$	677,423		$	760,177

⁽¹⁾	In fiscal 2005, the Company financed five CRJ-900 aircraft with $118 million in debt. The debt bears interest at the monthly London InterBank Offered Rate ("LIBOR"), plus 3% and requires monthly principal and interest payments. As of September 30, 2019, the loan has been repaid.

⁽²⁾	In fiscal 2004, the Company financed five CRJ-700 and nine CRJ 900 aircraft with $254.7 million in debt. The debt bears interest at the monthly LIBOR plus 3% and requires monthly principal and interest payments. As of September 30, 2019, the loan has been repaid.

⁽³⁾	In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (4.270% at September 30, 2019) and requires monthly principal and interest payments.

⁽⁴⁾	In fiscal 2014, the Company financed 10 CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus a spread ranging from 1.95% to 7.25% (3.970% to 9.270% at September 30, 2019) and requires monthly principal and interest payments.

⁽⁵⁾	In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5% and requires monthly principal and interest payments.

⁽⁶⁾

In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151 million bear interest at monthly LIBOR plus 2.71% (4.730% at September 30, 2019) and require monthly principal and interest payments. The subordinated notes payable are noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes.

⁽⁷⁾	In fiscal 2017, the Company financed 10 E-175 aircraft with $246 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments.

⁽⁸⁾

In fiscal 2017, the Company financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% (4.290% to 4.410% at September 30, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments.

⁽⁹⁾	In fiscal 2018, the Company financed certain flight equipment with $99.1 million in debt. The debt bears interest at the monthly LIBOR (rounded to the nearest 16th) plus 7.25% and requires monthly principal and interest payments. As of September 30, 2019, the loan has been repaid.

⁽¹⁰⁾

In December 2017, the Company refinanced nine CRJ-900 aircraft with $74.9 million in debt. The senior notes payable of $46.9 million bear interest at the three-month LIBOR plus 3.50% (5.590% at September 30, 2019) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (6.590% at September 30, 2019) and require quarterly principal and interest payments.

⁽¹¹⁾	In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and requires monthly principal and interest payments.

⁽¹²⁾	In fiscal 2015 and 2017, the Company financed certain flight equipment maintenance costs with $10.2 million in debt. The debt bears interest at the three-month LIBOR plus 3.07% (5.160% at September 30, 2019) and requires quarterly principal and interest payments.

⁽¹³⁾

In fiscal 2017 and 2018, the Company financed certain flight equipment maintenance costs with $11.9 million in debt. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% to 2.96% (5.020% to 5.050% at September 30, 2019) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of September 30, 2019, the Company was in compliance with this covenant.

⁽¹⁴⁾

In fiscal 2018, the Company financed certain flight equipment maintenance costs with $25.0 million in debt. The debt bears interest at the three-month LIBOR plus 3.30% and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of September 30, 2019, the loan has been repaid.

⁽¹⁵⁾	In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments.

⁽¹⁶⁾

In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $65.8 million bear interest at the three-month LIBOR plus 3.50% (5.590% at September 30, 2019) and require quarterly principal and interest payments. The subordinated notes payable of $29.8 million bear interest at three-month LIBOR plus 7.50% (9.590% at September 30, 2019) and require quarterly principal and interest payments.

⁽¹⁷⁾	In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (5.120% at September 30, 2019) and requires monthly principal and interest payments.

⁽¹⁸⁾	In June 2019, the Company financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.25% (7.270% at September 30, 2019) and requires monthly principal and interest payments.

⁽¹⁹⁾

The Company financed certain flight equipment on September 27, 2019 for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.25% (7.27% at September 30, 2019) and requires monthly principal and interest payments. As of September 30, 2019 we had $8.0 million outstanding under these notes.

Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of September 30, 2019, and for each of the next five years are as follows (in thousands):

	Total Principal
Periods Ending September 30,	Amount
2020		165,900
2021		161,359
2022		152,745
2023		103,165
2024		71,033
Thereafter		203,943
	$	858,145