Long-term Debt

9 Months Ended

Sep. 30, 2021

Long-term Debt

Long-term Debt

(9) Long-term Debt

Long-term debt consisted of the following as of September 30, 2021, and December 31, 2020 (in thousands):

		September 30, 2021		December 31, 2020
Current portion of long-term debt	$	363,379	$	406,005
Current portion of unamortized debt issue cost, net		(3,491)		(3,847)
Current portion of long-term debt, net of debt issue costs	$	359,888	$	402,158
Long-term debt, net of current maturities	$	2,633,194	$	2,829,997
Long-term portion of unamortized debt issue cost, net		(28,131)		(28,459)
Long-term debt, net of current maturities and debt issue costs	$	2,605,063	$	2,801,538
Total long-term debt (including current portion)	$	2,996,573	$	3,236,002
Total unamortized debt issue cost, net		(31,622)		(32,306)
Total long-term debt, net of debt issue costs	$	2,964,951	$	3,203,696

During the nine months ended September 30, 2021, the Company took delivery of six new E175 aircraft that the Company financed through $117.9 million of long-term debt. The debt associated with the six E175 aircraft has a 12-year term, is due in quarterly installments with fixed annual interest rates ranging from 2.7% to 2.8% and is secured by the E175 aircraft.

During the nine months ended September 30, 2021, in connection with the PSP Extension Agreement and the PSP 3 Agreement, the Company issued to U.S. Treasury promissory notes for an aggregate principal amount of $95.4 million and issued warrants to purchase up to 203,090 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 $95.4 million of long-term debt and $5.8 million in common stock, respectively. The warrants have a five-year term from the date of issuance and 124,773 of the warrants have an exercise price of $40.41 per share and 78,317 of the warrants have an exercise prices of $57.47 per share. See Note 2, “Impact of the COVID-19 Pandemic,” for further discussion of the terms of the payroll support program loan and warrants.

During the second quarter of 2021, the Company repaid all amounts outstanding under the secured loan with U.S. Treasury, and in connection with such repayment, terminated the secured loan agreement. The total repayment amount was $61.2 million, which included all outstanding principal and accrued interest under the secured loan. As a result of the repayment, the collateral securing the obligations of SkyWest Airlines under the secured loan agreement, consisting of aircraft engines and aircraft parts, was released.

During the three months ended September 30, 2021, the Company repaid $80.1 million of debt related to aircraft early.

As of September 30, 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 September 30, 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 September 30, 2021, SkyWest Airlines had no amount outstanding under the facility. However, at September 30, 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. During the three months ended September 30, 2021, the Company extended the expiration date of the line of credit to January 1, 2022.