Spirit Airlines announces closing of private offering by loyalty and brand subsidiaries

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Spirit Airlines announced the closing of a private offering of US$850 million in principal amount of 8.00% senior secured notes due 2025 offered by two newly-formed Spirit subsidiaries. The notes are guaranteed by Spirit and secured by Spirit’s customer loyalty programs and brand intellectual property.

“We’ve spent the past six months confronting the COVID-19 crisis head on and taking major steps to ensure our financial viability. We owe that to our valued Team Members, Guests and investors,” Spirit President and CEO Ted Christie said. “Our low fares and top-class reliability present a great value to consumers as travel demand builds and the economy recovers. We’ll be at the forefront of that recovery.”

Spirit also announced it no longer intends to participate in the U.S. Treasury’s secured loan program under the CARES Act, given the successful completion of the company’s secured note offering.

Furthermore, Spirit has completed its “at-the-market” (ATM) offering of 9 million shares of its common stock, which raised approximately US$156 million in net proceeds.

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