Long-Term Debt, Finance Leases, and Other Borrowings (Tables)

9 Months Ended

Jun. 30, 2022

Long-term debt as of June 30, 2022 and September 30, 2021, consisted of the following (in thousands):

	June 30,			September 30,
	2022			2021
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2027⁽¹⁾	$	77,058		$	86,551
Notes payable to secured parties, collateralized by the underlying
aircraft, due 2028⁽²⁾		141,690			152,100
Senior and subordinated notes payable to secured parties, collateralized
by the underlying aircraft, due 2028⁽³⁾		110,892			122,762
Other obligations due to financial institutions, collateralized by the underlying
equipment, due 2023 and 2024⁽⁴⁾		18,481			4,581
Notes payable to financial institution, collateralized by the underlying
equipment, due 2024⁽⁵⁾		31,557			45,559
Notes payable to financial institution, collateralized by the underlying
aircraft, due 2023⁽⁶⁾		17,500			30,625
Notes payable to financial institution due 2023⁽⁷⁾		2,500			4,000
Revolving credit facility⁽⁸⁾		15,630			22,930
Notes payable to U.S. Treasury due 2025⁽⁹⁾		204,947			201,227
Notes payable to financial institution, collateralized by the underlying
equipment, due 2027⁽¹⁰⁾		33,141			—
Gross long-term debt, including current maturities		653,396			670,335
Less unamortized debt issuance costs		(9,522	)		(9,295	)
Less notes payable warrants		(7,867	)		(9,630	)
Net long-term debt, including current maturities		636,007			651,410
Less current portion, net of unamortized debt issuance costs		(112,776	)		(111,710	)
Net long-term debt	$	523,231		$	539,700

⁽¹⁾

In fiscal 2015, we financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $154.7 million bear interest at monthly LIBOR plus 2.71% 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. We 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.

⁽²⁾	In fiscal 2016, we financed ten E-175 aircraft with $246.0 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.

⁽³⁾

In fiscal 2016, we financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments.

⁽⁴⁾

In February 2018, we leased two spare engines. The leases were determined to be finance leases as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.13% and the leases require monthly payments. In April 2022, we leased a spare engine which was determined to be a finance lease. The lease requires monthly payments. In July 2022, we extended our existing two aircraft under operating leases, which were determined to be finance leases upon classification assessment.

⁽⁵⁾	In January 2019, we financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% and requires monthly principal and interest payments.

⁽⁶⁾	In June 2019, we financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments.

⁽⁷⁾	In September 2019, we financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% and requires monthly principal and interest payments.

⁽⁸⁾	In September 2019, we extended the term on our $35.0 million working capital draw loan by three years, which now terminates in December 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%.

⁽⁹⁾

^{In October 2020, we entered into a loan and guarantee agreement with the U.S. Department of the Treasury for a secured loan facility of up to $200.0 million that matures on October 30, 2025. On October 30, 2020, we borrowed $43.0 million and on November 13, 2020, we borrowed an additional $152.0 million. These amounts bear interest at the three-month LIBOR plus 3.50%. No further borrowings are available under the loan and guarantee agreement.}

⁽¹⁰⁾

In December 2021 and June 2022, we financed the purchase of spare engines with $35.3 million in debt. The debt bears interest at monthly LIBOR plus 4.25% and requires monthly principal and interest payments over a term of six years. The financing arrangement allows for additional borrowings to finance future engine purchases.

Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of June 30, 2022, and for each of the next five years are as follows (in thousands):


Periods Ending September 30,	Total Principal
2022 (remainder of)	$	29,822
2023		111,432
2024		72,400
2025		63,751
2026		271,065
Thereafter		104,926
	$	653,396