Spirit Airlines has announced an underwritten public offering of $440 million in aggregate principal convertible senior notes due 2026. The company will grant the underwriters a 30 day option to acquire up to $60 million in addition, to cover over-allotments.
On Tuesday (April 27, 2021), Spirit Airlines announced the launch of an underwritten public offering of an aggregate principal of $440 million in convertible senior notes due 2026. The airline intends on granting the underwriters a 30-day option to purchase up to an additional $60 million in convertible notes to cover over-allotments. Separately, Spirit is conducting a registered direct offering of shares of their common stock to certain holders of the company’s outstanding 4.75% convertible senior notes due 2025.
The company expects to use a portion of the proceeds to repurchase a portion of their senior convertible notes due in 2025 for cash, pursuant to privately negotiated agreements, subject to the consummation of the new convertible notes offering. The remaining net proceeds will be used for general corporate purposes. Proceeds from the common stock offering will be used to redeem up to 40% of the original outstanding principal amount, or up to $340 million, of the company’s senior secured notes due in 2025 at a redemption price of 108% plus accrued and unpaid interest. Barclays, Morgan Stanley, Citigroup, and Deutsche Bank are acting as underwriters for the convertible notes offering.
Update: April 28, 2021
On Wednesday (April 28, 2021) Spirit Airlines announced that their $440 million Senior Convertible Notes due 2026 will have a 1.0% Coupon. The company also priced their direct common stock offering of approximately 10.6 million shares at $35.05/share.
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. The carrier proudly calls their youthful fleet of aircraft their “Fit Fleet®.”
Source: Spirit Airlines