Debt Obligations

3 Months Ended

Mar. 31, 2018

4. Debt Obligations

Debt obligations consisted of the following:


	March 31,		December 31,
	2018		2017
	(in thousands)
Credit facility at a floating rate of interest of one-month LIBOR plus 2% at March 31, 2018, secured by engines. The facility has a committed amount of $890.0 million at March 31, 2018, which revolves until the maturity date of April 2021	$	604,000	$	491,000
WEST III Series A 2017-1 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines		285,990		289,295
WEST III Series B 2017-1 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines		40,898		41,370
WEST II Series 2012-A term notes payable at a fixed rate of interest of 5.50%, maturing in September 2037, secured by engines		253,798		259,022
Note payable at fixed interest rates ranging from 2.60% to 2.97%, maturing in July 2024, secured by an aircraft		12,278		12,720
Note payable at a variable interest rate of one-month LIBOR plus 2.25%, matured in January 2018, secured by engines		—		10,336
		1,196,964		1,103,743
Less: unamortized debt issuance costs		(17,307)		(18,338)
Total debt obligations	$	1,179,657	$	1,085,405

Principal outstanding at March 31, 2018, is repayable as follows:


Year	(in thousands)
2018	$	28,622
2019		38,537
2020		38,137
2021 (includes $604 million outstanding on revolving credit facility)		642,374
2022		190,889
Thereafter		258,405
Total	$	1,196,964

Virtually all of the above debt requires ongoing compliance with the covenants of each financing, including debt/equity ratios, minimum tangible net worth and minimum interest coverage ratios, and other eligibility criteria including customer and geographic concentration restrictions. The Company also has certain negative financial covenants such as liens, advances, change in business, sales of assets, dividends and stock repurchases. These covenants are tested either monthly or quarterly and the Company was in full compliance with all financial covenant requirements at March 31, 2018.

The Company maintains a revolving credit facility to finance the acquisition of aircraft engines for lease as well as for general working capital purposes. The $890 million revolving credit facility has an accordion feature which would expand the entire credit facility up to $1 billion. The interest rate is adjusted quarterly, based on the Company’s leverage ratio, as calculated under the terms of the revolving credit facility.