REPUBLIC AIRWAYS HOLDINGS INC.RJET
REPUBLIC AIRWAYS HOLDINGS INC. Debt Disclosure
DEBT
As of December 31, 2025, total indebtedness, net of debt discounts, premiums and issuance costs, consisted of (i) secured financing arrangements for security interests in aircraft and spare engines (“Aircraft and Engine Debt”), pass-through trust certificates secured by aircraft spare parts (“Equipment Debt”), and corporate real estate properties (“Real Estate Debt”); (ii) U.S. Treasury loan programs (“PSP Loans”); and (iii) finance leases. Amounts expected to be repaid
within 12 months are classified within the current portion of long-term debt and finance leases in the consolidated balance sheets. Balances at December 31, 2025 and 2024 are as follows:
(in millions) | Maturity Date(s) | Interest Rates (3) | 2025 | 2024 | ||||||||||||||||||||||
Secured financing facilities (1) | ||||||||||||||||||||||||||
Aircraft and Engine Debt (2) | 2026 – 2037 | 1.9% – 10.2% | $ | 833.6 | $ | 747.6 | ||||||||||||||||||||
| Real Estate Debt | 2026 | 8.0% | 49.3 | 50.5 | ||||||||||||||||||||||
| Equipment Debt | 2028 | 8.0% | 103.3 | 109.2 | ||||||||||||||||||||||
PSP Loans | 2030 – 2031 | 6.4% | 49.2 | 49.2 | ||||||||||||||||||||||
Finance leases (See Note 7) | 59.5 | 66.7 | ||||||||||||||||||||||||
Total debt and finance leases | 1,094.9 | 1,023.2 | ||||||||||||||||||||||||
Less: unamortized debt discounts and debt issuance costs | (10.0) | (11.4) | ||||||||||||||||||||||||
Less: current portion of long-term debt and finance leases | (202.0) | (259.6) | ||||||||||||||||||||||||
Long-term debt and finance leases—less current portion | $ | 882.9 | $ | 752.2 | ||||||||||||||||||||||
(1)The net book value of the underlying security interests is $1,701.3 million and $1,791.8 million as of December 31, 2025, and 2024, respectively, consisting of inventories, corporate properties, and property and equipment, net.
(2)Financing arrangements include fixed and variable rate debt. All of the variable rate instruments are measured at an equivalent to the Secured Overnight Financing Rate (“SOFR”), plus a specified margin.
(3)As of December 31, 2025.
Aircraft and Engine Debt—Financing arrangements are in exchange for security interests in first liens on the underlying aircraft and certain spare engines. Repayment obligations may be accelerated at the Company’s option, subject to customary early termination provisions.
During the year ended December 31, 2025, the Company obtained aggregate borrowings of $299.4 million consisting of new aircraft debt of $255.5 million secured by 12 factory new E175 aircraft, $1.2 million collateralized general aviation aircraft, and $42.7 million secured by a complement of spare engines. Payments on aggregate borrowings obtained are due in quarterly installments with terms ranging from to 12 years.
During the year ended December 31, 2024, the Company obtained aggregate borrowings of $177.3 million consisting of new aircraft debt of $126.2 million secured by six factory new E175 aircraft and $51.1 million collateralized or re-collateralized by a complement of regional and general aviation aircraft. Payments on aggregate borrowings obtained are due in quarterly installments with terms ranging from to 12 years. Additionally, during the year ended December 31, 2024, the Company made early debt extinguishments of $37.4 million in secured aircraft loans, plus accrued and unpaid interest expense related to the sale and disposition of the underlying aircraft.
Real Estate Debt—During the year ended December 31, 2023, the Company entered into a loan agreement for aggregate borrowings of $52.0 million which is collateralized by a portion of the Company’s new flight training campus and corporate headquarters in Carmel, Indiana (the “Aviation Campus”). Borrowings under the loan agreement bear interest at SOFR plus a stated margin with scheduled maturities through 2025. During the year ended December 31, 2025, the Company executed a one-year extension to the scheduled maturity through the year ending December 31, 2026 and has the option to extend for two additional one year terms. Repayment obligations may be accelerated at the Company’s option without penalty.
Equipment Debt—During the year ended December 31, 2023, the Company formed a pass-through trust for the sale of Class A Certificates (“Enhanced Equipment Trust Certificates” or “EETC”). The trust, in turn, gave effect to the sale of Series A Equipment Notes secured by certain of the Company’s spare aircraft equipment, generating aggregate proceeds of $118.0 million for general corporate purposes. Repayment of the Series A Equipment Notes occurs on a
specified maturity schedule through 2028 with regularly scheduled interest payments at 8.0% per annum. Repayment obligations may be accelerated at the Company’s option, subject to customary early termination provisions.
The Company evaluated whether the pass-through trust formed for administration of Equipment Debt is a variable interest entity (“VIE”) requiring potential consolidation within the consolidated financial statements. Although the pass-through trust constitutes a VIE, the Company is not the primary beneficiary of the trust and therefore it is not presented within these consolidated financial statements.
The Series A Equipment Notes include customary financial covenants pursuant to which the Company must maintain a certain loan-to-value ratio of the regularly appraised value of underlying spare parts.
Payroll Support Program Loans—The Payroll Support Program (“PSP”) loans are unsecured borrowings with scheduled maturities of the total outstanding principal obligation at the ten-year anniversary of each initial draw (“PSP Loan Term”). PSP Loans bear interest at an indexed rate plus 2.0%, payable on a quarterly basis over the PSP Loan Term. Voluntary pre-payment is permissible at any time without penalty.
Our credit agreements require that we comply with customary affirmative and negative covenants. Management believes the Company is in compliance with all of its financial covenants as of December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the Company had 100% cash collateralized letter of credit facilities of $22.8 million and $21.4 million, respectively. Amounts are recorded in restricted cash in the consolidated balance sheets.
Aggregate principal maturities as of December 31, excluding finance leases, are as follows (in millions):
Year | Total | |||||||
| 2026 | $ | 196.0 | ||||||
| 2027 | 120.2 | |||||||
| 2028 | 172.3 | |||||||
| 2029 | 76.0 | |||||||
| 2030 | 110.4 | |||||||
| Thereafter | 350.5 | |||||||
| Total | $ | 1,025.4 | ||||||
Substantially all debt obligations held by subsidiaries of the Company are guaranteed for timely payment and performance by the Parent.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.