Spirit Airlines has reported that Spirit IP Cayman and Spirit Loyalty Cayman (the Issuers), each a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly-owned subsidiary of Spirit, intend to commence a private offering to eligible purchasers of US$600 million in aggregate principal amount of senior secured notes due 2025 (the Notes), subject to market and other conditions. The Notes will be guaranteed by Spirit and certain subsidiaries of Spirit. The Notes will be secured by, among other things, a first priority lien on the core assets of Spirit's loyalty programs (comprised of cash proceeds from its Free Spirit co-branded credit card programs, its US$9 Fare Club program membership fees, and intellectual property utilized in connection with the loyalty programs) as well as Spirit's brand intellectual property.
The Issuers intend to lend the net proceeds from the offering of the Notes to Spirit, after depositing a portion of such proceeds in a reserve account. The final terms and amounts of the Notes are subject to market and other conditions and may be materially different than expectations. ($1.00 = AU$1.36 at time of publication.)
