Long-term Debt

3 Months Ended

Mar. 31, 2021

Long-term Debt

Long-term Debt

(9) Long-term Debt

Long-term debt consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):

		March 31, 2021		December 31, 2020
Current portion of long-term debt	$	360,843	$	406,005
Current portion of unamortized debt issue cost, net		(3,380)		(3,847)
Current portion of long-term debt, net of debt issue costs	$	357,463	$	402,158
Long-term debt, net of current maturities	$	2,779,931	$	2,829,997
Long-term portion of unamortized debt issue cost, net		(31,214)		(28,459)
Long-term debt, net of current maturities and debt issue costs	$	2,748,717	$	2,801,538
Total long-term debt (including current portion)	$	3,140,774	$	3,236,002
Total unamortized debt issue cost, net		(34,594)		(32,306)
Total long-term debt, net of debt issue costs	$	3,106,180	$	3,203,696

During the three months ended March 31, 2021, in connection with the PSP Extension Agreement, the Company issued to U.S. Treasury a promissory note for an aggregate principal amount of $39.9 million and issued warrants to purchase 98,815 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 $39.9 million of long-term debt and $3.3 million in common stock, respectively. These warrants have an exercise price of $40.41 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 March 31, 2021, and December 31, 2020, the Company had $59.5 million and $61.1 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions.

As of March 31, 2021, 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 March 31, 2021, SkyWest Airlines had no amount outstanding under the facility. However, at March 31, 2021 SkyWest Airlines had $34.0 million in letters of credit issued under the facility, which reduced the amount available under the facility to $41.0 million. The Company obtained waivers for the line of credit agreement that permitted the Company to receive funding under the CARES Act and waived compliance with minimum profitability covenants through June 30, 2021. The line of credit expires on September 30, 2021.