Notes Payable and Accrued Interest

3 Months Ended

Mar. 31, 2014

Notes Payable and Accrued Interest [Abstract]

5. Notes Payable and Accrued Interest

At March 31, 2014 and December 31, 2013, the Company’s notes payable and accrued interest consisted of the following:

	March 31, 2014		December 31, 2013
Credit Facility principal	$	104,900,000	$	77,500,000
Credit Facility accrued interest		80,800		27,300
	$	104,980,800	$	77,527,300

The Company’s $130 million Credit Facility (the “Credit Facility”), which is provided by a syndicate of banks, expires on September 30, 2015. The Credit Facility is secured by all of the assets of the Company, including its aircraft and engine portfolio.

In November 2013, the Company obtained a waiver of compliance with a customer concentration covenant under its Credit Facility agreement at the September 30, 2013 and December 31, 2013 calculation dates. The Company was in compliance with all other covenants under the Credit Facility agreement at December 31, 2013, and was in compliance with all covenants at March 31, 2014.

The unused amount of the Credit Facility was $25,100,000 and $52,500,000 as of March 31, 2014 and December 31, 2013, respectively.

The weighted average interest rate on the Credit Facility was 3.94% at March 31, 2014 and December 31, 2013.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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