Spirit Airlines Extends Debt Refinancing Deadline To December

(RTTNews) - Spirit Airlines on Friday said it reached agreement with U.S. Bank National Association, the credit card processor, to again extended a debt refinancing timeline to December 23, 2024. On September 9, 2024, the Company already extended the 2025 Notes deadline from September 20, 2024 to October 21, 2024.

Shares ended the regular trading session at $1.47, down 3%. However, the stock gained 29% to $1.91 in after-hours trading.

The company said it remains in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 with respect to their respective maturities.

Consistent with prior view, the Company expects to end the year 2024 with over $1.0 billion of liquidity, including unrestricted cash and cash equivalents, short-term investment securities and additional liquidity initiatives, assuming that the Company is able to close those initiatives that are currently in process.

Earlier this week, the company also borrowed the entire $300 million available under reveolving credit facility. Borrowings under the Revolving Credit Facility will mature on September 30, 2026; provided that if the Company's senior secured notes due 2025 are not extended or refinanced by June 20, 2025, or the Company's convertible senior notes due 2026 are not extended or refinanced by February 12, 2026, in each case in a specified minimum outstanding principal amount thereof, then the maturity will be automatically shortened to June 21, 2025 or February 13, 2026, respectively.

Spirit has been in discussions with bondholders about the terms of a possible bankruptcy filing following its unsuccessful merger with JetBlue Airways, the Wall Street Journal reported, earlier this month.