Spirit Airlines, Inc.
The plan aims to reduce debt, enhance financial flexibility, support long-term success, and accelerate investments to improve guest travel experiences and value.
The company's key measures include a $350 million backstopped equity investment from existing bondholders and the equitization of $795 million in funded debt.
Additionally, bondholders are providing $300 million in DIP financing, complemented by Spirit's cash reserves and operational cash flow, to support the restructuring process.
Spirit has filed a Plan of Reorganization as part of its Chapter 11 process, incorporating the terms of the RSA and awaiting Court approval.
With support from a supermajority of loyalty and convertible bondholders, the company expects to emerge from Chapter 11 in the first quarter of 2025.
First-day motions are also being filed to ensure normal business operations during the process.
As a result of the filing, Spirit anticipates being delisted from the NYSE soon, with its common stock continuing to trade over-the-counter. The shares are expected to be canceled and hold no value as part of the restructuring.
Ted Christie, Spirit's President and Chief Executive Officer, said, "This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives to transform our Guest experience, providing new enhanced travel options, greater value and increased flexibility."
Last week, Spirit filed the form, signaling it cannot submit its 2024 third-quarter earnings on time, as the company has diverted resources from reviewing and completing financial statements to ongoing debt restructuring discussions.
This came after Spirit's merger conversations with Fronter Group Holdings Inc. and and its takeover by JetBlue Airways
Price Action: SAVE shares are up 3.70% at $1.12 premarket at the last check Monday.
