Debt and Other Obligations
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
As of March 31, 2021, the Company had outstanding public and non-public debt instruments. During the three months ended March 31, 2021, the Company incurred debt through a fixed-rate unsecured term loan.

Unsecured term loans

In connection with the Company's participation in the PSP2, the Company received a total of $184.5 million in the first quarter of 2021, used exclusively to pay for salaries, wages and benefits for the Company's Team Members through March 31, 2021. Of that amount, $25.3 million is in the form of a low-interest 10-year unsecured term loan. Interest on this loan is payable semi-annually at a rate of 1.0% in years 1 through 5 and a rate of the Secured Overnight Financing Rate plus 2.0% in years 6 through 10. The note is prepayable at any time, without penalty, at the Company’s option and has principal due at maturity in 2031.

The Company has concluded that no terms exist within the contract that would require a short-term classification of the debt instrument within the Company’s condensed consolidated balance sheet at the inception of the loan. Therefore, the debt has been recorded at face value and classified within long-term debt and finance leases in the Company’s condensed consolidated balance sheets.

Revolving credit facility due in 2024

On March 30, 2020, the Company entered into a revolving credit facility for $110.0 million, with an option to increase the overall commitment amount up to $350 million with the consent of any participating lenders and subject to borrowing base availability. In the second quarter of 2020, the commitment was increased to $180.0 million. During the first quarter of 2021, the commitment was further increased to $240.0 million. As of March 31, 2021 and December 31, 2020, the Company had drawn $180.0 million on the revolving credit facility leaving $60.0 million undrawn and available as of March 31, 2021. Any amounts drawn on this facility are included in long-term debt and finance leases, less current maturities on the Company's condensed consolidated balance sheets. During the first quarter of 2021, the maturity date of the facility was extended for two additional years. The final maturity of the facility is March 30, 2024.

Revolving credit facility due in 2021

During the fourth quarter of 2018, the Company entered into a revolving credit facility for up to $160.0 million secured by the collateral assignment of certain of the Company's rights under the purchase agreement with Airbus, related to Airbus A320neo aircraft scheduled to be delivered at the time. The maximum borrowing capacity of the facility decreased with the deliveries of the related aircraft. As of December 31, 2020, the Company had drawn the then maximum borrowing capacity of $95.1 million, included in current maturities of long-term debt and finance leases on the Company's condensed consolidated balance sheets. The revolving credit facility matured on March 30, 2021 and as such, no amounts remained outstanding as of March 31, 2021.

Convertible debt

On May 12, 2020, the Company completed the public offering of $175.0 million aggregate principal amount of 4.75% convertible senior notes due 2025. As of March 31, 2021, the if-converted value exceeds the principal amount of the convertible notes by $265.4 million, using the average stock price for the three months ended March 31, 2021. Since the notes are currently convertible in accordance with the terms of the indenture governing such notes, the Company has $175.0 million recorded within current maturities of long-term debt and finance leases on its condensed consolidated balance sheets related to its convertible debt.
Noteholders may convert their notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock; and (4) at any time from, and including, February 18, 2025 until the close of business on the second scheduled trading day immediately before the maturity date. As of March 31, 2021, the notes may be converted by noteholders through June 30, 2021. No notes were converted during the quarter ended March 31, 2021.

Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election. The initial conversion rate is 78.4314 shares of voting common stock per $1,000 principal amount of convertible notes (equivalent to an initial conversion price of approximately $12.75 per share of common stock). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. The Company intends to settle conversions in cash up to the principal amount of the convertible notes, with any excess conversion value settled in shares of the Company's common stock.


Long-term debt is comprised of the following:
As ofAs of
March 31, 2021December 31, 2020March 31, 2021December 31, 2020
(in millions)(weighted-average interest rates)
8.00% senior secured notes due in 2025
$850.0 $850.0 8.00 %8.00 %
Fixed-rate loans due through 20321,272.9 1,301.9 3.36 %3.36 %
Unsecured term loans due in 203198.7 73.3 1.00 %1.00 %
Fixed-rate class A 2015-1 EETC due through 2028322.6 322.6 4.10 %4.10 %
Fixed-rate class B 2015-1 EETC due through 202464.0 64.0 4.45 %4.45 %
Fixed-rate class C 2015-1 EETC due through 202386.6 86.6 4.93 %4.93 %
Fixed-rate class AA 2017-1 EETC due through 2030
207.3 214.4 3.38 %3.38 %
Fixed-rate class A 2017-1 EETC due through 2030
69.1 71.5 3.65 %3.65 %
Fixed-rate class B 2017-1 EETC due through 2026
58.2 60.6 3.80 %3.80 %
Fixed-rate class C 2017-1 EETC due through 2023
85.5 85.5 5.11 %5.11 %
Convertible debt due in 2025175.0 175.0 4.75 %4.75 %
Revolving credit facility due in 2021— 95.1 N/A1.55 %
Revolving credit facility due in 2024180.0 180.0 2.11 %2.15 %
Long-term debt$3,469.9 $3,580.5 
Less current maturities356.0 383.5 
Less unamortized discounts, net

66.5 131.4 
Total$3,047.4 $3,065.6 

During the three months ended March 31, 2021, the Company made scheduled principal payments of $135.9 million on its outstanding debt obligations. During the three months ended March 31, 2020, the Company made scheduled principal payments of $42.6 million on its outstanding debt obligations.
At March 31, 2021, long-term debt principal payments for the next five years and thereafter are as follows:
March 31, 2021
(in millions)
remainder of 2021$154.0 
2022192.0 
2023335.5 
2024401.0 
20251,212.2 
2026 and beyond1,175.2 
Total debt principal payments$3,469.9 

Interest Expense

Interest expense related to long-term debt and finance leases consists of the following:
 Three Months Ended March 31,
20212020
(in thousands)
8.00% senior secured notes (1)
$17,434 $— 
Fixed-rate term loans10,903 10,426 
Unsecured term loans199 — 
Class A 2015-1 EETC3,275 3,549 
Class B 2015-1 EETC705 795 
Class C 2015-1 EETC1,056 1,209 
Class AA 2017-1 EETC1,755 1,887 
Class A 2017-1 EETC633 680 
Class B 2017-1 EETC557 644 
Class C 2017-1 EETC1,080 1,092 
Convertible debt2,078 — 
Revolving credit facilities1,170 1,159 
Finance leases24 113 
Commitment and other fees428 218 
Amortization of deferred financing costs3,509 2,106 
Total$44,806 $23,878 

(1) Includes $0.4 million of accretion and $17.0 million of interest expense for the three months ended March 31, 2021.