Sun Country Airlines Holdings, LLCSNCY
Sun Country Airlines Holdings, LLC Debt Disclosure
8. DEBT
Credit Facilities
In March 2025, the Company executed a new $75,000 Revolving Credit Facility with a group of lenders. The new Revolving Credit Facility replaces the Company's previous $25,000 revolving credit facility. The interest rate on borrowings is determined using a base rate plus an applicable margin of 2.5%. In addition, there is a commitment fee on the unused Revolving Credit Facility of 0.6%. The Revolving Credit Facility is guaranteed by the Company and secured by a pool of collateral. Accordingly, the Company pledged certain assets as collateral, including certain previously unencumbered aircraft, to support the ability to efficiently utilize the Revolving Credit Facility. Available funds from the Revolving Credit Facility can be used for general corporate purposes. The Revolving Credit Facility includes financial covenants that require the Company to maintain: 1) minimum liquidity, as defined within the agreement, of not less than $55,000, 2) a minimum adjusted EBITDAR of $110,000 for any four consecutive fiscal quarters and 3) a minimum ratio of the borrowing base of the collateral to outstanding obligations under the Revolving Credit Facility of not less than 1.0 to 1.0. The Company was in compliance with these financial covenants as of December 31, 2025. As of December 31, 2025, the Company had $75,000 of financing available through the Revolving Credit Facility.
Long-term Debt
2025 Term Loan Facility
In September 2025, the Company executed a term loan facility with a face amount of $108,000 ("2025 Term Loan Facility") for the purpose of refinancing the Company's five Boeing 737-900ER aircraft, of which two are currently on lease to an unaffiliated airline. The Company's five Boeing 737-900ERs are pledged as collateral. During the year ended December 31, 2025, the Company drew the full $108,000 face amount from the 2025 Term Loan Facility. The proceeds were used to repay the remaining $20,953 of the term loan credit facility executed in March 2023 ("2023 Term Loan Credit Facility") with the remainder to be used for general corporate purposes. The 2025 Term Loan Facility is repaid quarterly through September 2032, with the remaining balance due and payable in a single payment upon maturity.
The fixed interest rate on the 2025 Term Loan Facility is 5.98%, which was determined using a base rate plus an applicable margin of 2.60%. During the year ended December 31, 2025, the Company recorded $1,604 in debt issuance costs associated with the 2025 Term Loan Facility.
2023 Term Loan Credit Facility
During the year ended December 31, 2023, the Company executed the 2023 Term Loan Credit Facility with a face amount of $119,200 for the purpose of financing the initial acquisition of five Boeing 737-900ER aircraft. On the acquisition date, all five aircraft were on lease to an unaffiliated airline. The loan was repaid monthly. During the lease term, payments collected from the lessee were applied directly to the repayment of principal and interest on the 2023 Term Loan Credit Facility. The Owned Aircraft Held for Operating Lease, as well as the related lease payments received from the lessee, were pledged as collateral. In December 2024, the Company made a partial repayment of $60,000 on the 2023 Term Loan Credit Facility using proceeds from the reissued Class C trust certificates Series 2019-1.
During the year ended December 31, 2025, the Company repaid the outstanding balance of $20,953 of the 2023 Term Loan Credit Facility in full using proceeds received from the 2025 Term Loan Facility. The Company recorded a $391 loss on extinguishment of debt during the year ended December 31, 2025 in connection with repayment of the 2023 Term Loan Credit Facility, which represents the write-off of the remaining unamortized deferred financing costs.
Pass-Through Trust Certificates
During March 2022, the Company arranged for the issuance of the 2022-1 EETC in an aggregate face amount of $188,277 for the purpose of financing or refinancing 13 aircraft. The Company is required to make bi-annual principal and interest payments each March and September, through March 2031. These notes bear interest at an annual rate between 4.84% and 5.75%. The weighted average interest rate was 5.04% as of December 31, 2025.
In December 2019, the Company arranged for the issuance of the 2019-1 EETC in an aggregate face amount of $248,587 for the purpose of financing or refinancing 13 used aircraft, which was completed in 2020. The Company is required to make bi-annual principal and interest payments on the 2019-1 EETC each June and December, through December 2027. These notes bear interest at an annual rate between 4.13% and 7.10%. The weighted average interest rate was 5.56% as of December 31, 2025.
In December 2024, the Company reissued Class C trust certificates from the 2019-1 EETC, which had previously been repaid, in an aggregate face amount of $60,000 and concurrently applied the proceeds to repay a portion of the 2023 Term Loan Credit Facility. The reissued Class C trust certificates had no impact on the bi-annual payment schedule or the term of the 2019-1 EETC.
Long-term Debt includes the following:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| 2019-1 EETC (see terms and conditions above) | $ | 101,512 | $ | 158,510 | |||||||
| 2022-1 EETC (see terms and conditions above) | 118,288 | 138,532 | |||||||||
| 2023 Term Loan Credit Facility (see terms and conditions above) | — | 33,080 | |||||||||
| 2025 Term Loan Facility (see terms and conditions above) | 106,610 | — | |||||||||
| Total Debt | 326,410 | 330,122 | |||||||||
| Less: Unamortized debt issuance costs | (3,064) | (3,000) | |||||||||
| Less: Current Maturities of Long-term Debt, net | (68,017) | (87,579) | |||||||||
| Total Long-term Debt, net | $ | 255,329 | $ | 239,543 | |||||||
Future maturities of the outstanding Debt are as follows:
| December 31 | Debt Principal Payments | Amortization of Debt Issuance Costs | Net Debt | |||||||||||||||||
| 2026 | $ | 69,057 | $ | (1,040) | $ | 68,017 | ||||||||||||||
| 2027 | 97,113 | (813) | 96,300 | |||||||||||||||||
| 2028 | 31,973 | (460) | 31,513 | |||||||||||||||||
| 2029 | 39,589 | (340) | 39,249 | |||||||||||||||||
| 2030 | 29,974 | (239) | 29,735 | |||||||||||||||||
| Thereafter | 58,704 | (172) | 58,532 | |||||||||||||||||
| Total | $ | 326,410 | $ | (3,064) | $ | 323,346 | ||||||||||||||
The fair value of Debt was $315,872 and $311,103 as of December 31, 2025 and 2024, respectively. The fair value of the Company’s debt was based on the discounted amount of future cash flows using the Company’s end-of-period estimated incremental borrowing rate for similar obligations. The estimates were primarily based on Level 3 inputs.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 18, 2022 | |
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.