Spirit Airlines has entered into a series of liability management transactions given the favorable market dynamics.
The company received US$371.3 million from an issuance of 10,594,073 shares of its common stock to holders of its 4.75% Convertible Senior Notes due 2025 (the 2025 Convertible Notes). Spirit used US$368.7 million of the net proceeds from the common stock offering to redeem US$340.0 million aggregate principal amount of its US$850.0 million 8.00% Senior Secured Notes due 2025, plus a premium of US$27.2 million and US$1.5 million in related accrued interest. As a result, US$510.0 million in 8.00% Senior Secured Notes remain outstanding.
In addition, the company issued US$500.0 million aggregate principal amount of 1.00% Convertible Senior notes due 2026 with a conversion price of US$49.07 per share. The US$500.0 million aggregate principal amount includes US$60.0 million of an over-allotment that the company granted to, and exercised by, the underwriters of the 2026 Convertible Notes. Net proceeds from this transaction were used to retire US$146.8 million aggregate principal amount of the 2025 Convertible Notes, plus a premium of US$290.7 million and accrued interest of US$3.2 million. As a result, US$28.2 million aggregate principal amount of the 2025 Convertible Notes remain outstanding.
Additionally, the company plans to use approximately US$45.0 million of the remaining net proceeds to repay outstanding indebtedness under its Senior Secured Revolving Credit Facility due March 2024.
