Debt Financing Activities
During the third quarter of 2012, the Company entered into additional debt facilities aggregating $546.4 million, which included $450.0 million in senior unsecured notes, a $90.0 million addition to our Syndicated Unsecured Revolving Credit Facility and additional unsecured term facilities aggregating $6.4 million. We ended the quarter with total unsecured debt outstanding of $2.5 billion. The Company’s unsecured debt as a percentage of total debt increased to 58.6% as of September 30, 2012 from 31.7% as of December 31, 2011. We ended the third quarter of 2012 with a conservative balance sheet with low leverage and ample available liquidity of $1.47 billion. As part of our financing strategy we will continue to focus on financing the Company on an unsecured basis.
We will continue to focus our financing efforts on raising unsecured debt through the international and domestic capital markets, the global bank market, reinvesting cash flow from operations and, to a limited extent, secured financings including government guaranteed loan programs from the European Export Credit Agencies in support of our new Airbus aircraft deliveries, from Ex-Im Bank in support of our new Boeing aircraft deliveries and direct financing from BNDES/SBCE in support of our new Embraer deliveries.
As of September 30, 2012, we had established a diverse lending group consisting of 33 banks across four general types of lending facilities. The Company’s debt financing was comprised of the following at September 30, 2012 and December 31, 2011 (dollars in thousands):
|September 30, 2012||December 31, 2011|
|Total secured debt financing||1,782,792||1,783,507|
|Convertible senior notes||200,000||200,000|
|Revolving credit facilities||330,000||358,000|
|Total unsecured debt financing||2,523,301||826,209|
|Total secured and unsecured debt financing||4,306,093||2,609,716|
|Less: Debt discount||(10,017||)||(6,917||)|
|Selected interest rates and ratios:|
|Composite interest rate (1)||3.97||%||3.14||%|
|Composite interest rate on fixed rate debt (1)||5.06||%||4.28||%|
|Percentage of total debt at fixed rate||54.32||%||24.26||%|
(1) Based on debt balances and rates in effect as of September 30, 2012 and December 31, 2011. This rate does not include the effect of upfront fees, undrawn fees or issuance cost amortization.
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