• Joe Breitfeller

Spirit Airlines Announces Closing of 1.00 Percent Convertible Senior Notes Due 2026

Spirit Airlines has announced the closing of their 1.00% Convertible Senior Notes offer due 2026. The company also received $371.3 million from the issuance of over 10 million common shares to its 4.75% Convertible Senior Notes due 2025.


Spirit Airlines Airbus A319 - Courtesy Spirit Airlines

On Monday (May 3, 2021), Spirit Airlines announced the closing of their 1% Convertible Senior Notes due 2026. The company issued $500 million in aggregate principal of 1.00% Convertible Senior Notes due 2026 with a conversion price of $49.07 per share. The total includes a $60 million over-allotment exercised by the underwriters. Net proceeds from the transaction were used to retire $146.8 million of the 2025 Convertible Notes, plus a premium of $290.7 million and accrued interest of $3.2 million. As a result, the outstanding remaining total of 2025 Convertible Notes is $28.2 million. Spirit plans on using the remaining $45 million to repay outstanding indebtedness under their Senior Secured Revolving Credit Facility due March 2024.


Additionally, the company received $371.3 million from the issuance of 10,594,073 common shares to holders of its 4.75% Convertible Senior Notes due 2025. Spirit used $368.7 million of the proceeds to redeem $340 million of its $850 million 8.00% Senior Secured Noted due 2025, plus a premium of $27.2 million and $1.5 million in interest. After these transactions, the weighted average of outstanding common shares for the second quarter is estimated at 105.3 million. Spirit estimates that during periods of profitability, where the company’s average share price is less than $49.07, their weighted average diluted shares outstanding will be around 110.6 million going forward.


Miramar, Florida-based low-cost carrier Spirit Airlines (NYSE: SAVE) is committed to offering the best value in the sky with service to destinations in the U.S., Latin America, and the Caribbean. The airline allows customers to select and pay for only the products and services they want, something they call “À La Smarte.” Spirit also operates one of the youngest and most fuel-efficient fleets in the U.S., which the carrier proudly calls their “Fit Fleet®.”



Source: Spirit Airlines

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