Long-Term Debt

6 Months Ended

Jun. 30, 2020

Long-Term Debt

Long-Term Debt

Note 9 — Long-Term Debt

Long-term debt consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020		December 31, 2019
Current portion of long-term debt	$	312,538	$	367,954
Current portion of unamortized debt issue cost, net		(3,379)		(3,828)
Current portion of long-term debt, net of debt issue costs	$	309,159	$	364,126
Long-term debt, net of current maturities	$	2,684,331	$	2,649,569
Long-term portion of unamortized debt issue cost, net		(20,209)		(20,580)
Long-term debt, net of current maturities and debt issue costs	$	2,664,122	$	2,628,989
Total long-term debt (including current portion)	$	2,996,869	$	3,017,523
Total unamortized debt issue cost, net		(23,588)		(24,408)
Total long-term debt, net of debt issue costs	$	2,973,281	$	2,993,115

During the six months ended June 30, 2020, the Company took delivery of two new E175 aircraft that the Company financed through $36.1 million of long-term debt. The debt associated with the two E175 aircraft has a 12-year term, is due in quarterly installments with fixed annual interest rates ranging from 2.3% and is secured by the E175 aircraft.

During the six months ended June 30, 2020, in connection with the CARES Act payroll support program, the Company issued to Treasury a promissory note for an aggregate principal amount of $62.0 million and issued warrants to purchase 218,409 shares of the Company’s common stock. The Company has recorded the value of the promissory note and warrants on a relative fair value basis as $62.0 million of long-term debt and $2.9 million in common stock, respectively. The Company issued the final $39.4 million installment of the promissory note and issue the remaining 138,908 warrants to purchase shares of the Company’s common stock in July 2020 in connection with receipt of the final payments under the payroll support program. These warrants have an exercise price of $28.38 per share and a five-year term from the date of issuance. See Note 2, “Impact of the COVID-19 Pandemic,” for further discussion of the terms of the payroll support program loan and warrants.

As of June 30, 2020, and December 31, 2019, the Company had $61.8 million and $61.7 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of June 30, 2020, SkyWest Airlines had a $75 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of June 30, 2020, the Company was in compliance with the line of credit covenants. As of June 30, 2020, SkyWest Airlines had no amount outstanding under the facility. However, at June 30, 2020 SkyWest Airlines had $8.8 million in letters of credit issued under the facility,

which reduced the amount available under the facility to $66.2 million. The Company obtained a waiver under the line of credit to allow the Company to receive funding under the CARES Act.