Notes Payable and Accrued Interest

6 Months Ended

Jun. 30, 2017

Notes Payable and Accrued Interest [Abstract]

Notes Payable and Accrued Interest

4.Notes Payable and Accrued Interest

At June 30, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following:

	June 30, 2017			December 31, 2016
Credit Facility:
Principal	$	133,300,000		$	110,100,000
Unamortized debt issuance costs		(1,634,200	)		(1,999,900	)
Accrued interest		153,200			83,600
SPE Financing:
Principal		15,589,700			17,623,600
Accrued interest		25,000			30,600
	$	147,433,700		$	125,837,900

(a)Credit Facility

The Company's Credit Facility is provided by a syndicate of banks and is secured by all of the assets of the Company, including its aircraft and engine portfolio. As discussed in Note 9, in July 2017, the Credit Facility was amended to increase the total amount available from $150 million to $170 million, as well as to revise certain financial covenants.

The Credit Facility, which expires on May 31, 2019, can be expanded to a maximum of $180 million.  The Company was in compliance with all covenants under the Credit Facility at June 30, 2017 and December 31, 2016.

The unused amount of the Credit Facility (under the prior $150 million maximum amount) was $16,700,000 and $39,900,000 as of June 30, 2017 and December 31, 2016, respectively.   The weighted average interest rate on the Credit Facility was 4.68% and 4.15% at June 30, 2017 and December 31, 2016, respectively.

(b)SPE Financing

In August 2016, the Company acquired two regional jet aircraft using cash and financing separate from its Credit Facility.  The separate SPE Financing resulted in note obligations of $9,805,600 and $9,804,300, which are being paid from a portion of the rent payments on the related aircraft leases through October 3, 2020 and November 7, 2020, respectively, and which bear interest at the rate of 4.455%.  The borrower under each note obligation is the special purpose entity that owns each aircraft.  The notes are collateralized by the aircraft and are recourse only to the special purpose entity borrower and its aircraft asset, subject to standard exceptions for this type of financing.  Payments due under the notes consist of quarterly principal and interest.  The combined balance of the notes payable and accrued interest on these notes at June 30, 2017 and December 31, 2016 was $15,614,700 and $17,654,200, respectively.