Spirit Airlines has announced that it secured a $300 million post-bankruptcy credit facility, securing the commitment from certain debtholders who pre-dated its Chapter 11 bankruptcy process. $300 million facility On January 14, 2025, Spirit Airlines signed a commitment letter for a $300 million senior secured revolving credit facility. Certain pre-bankruptcy debtholders signed the commitment to provide additional liquidity to the airline.
The facility is split between a $275 million revolving credit loan and letters of credit and a $25 million uncommitted incremental revolving credit facility, according to the United States Securities and Exchange Commission (SEC) filing. However, the $300 million will become available once the company officially emerges from Chapter 11 bankruptcy proceedings and meets other conditions. Spirit Airlines will use the facility for working capital and other general corporate needs of the company and its subsidiaries after closing the bankruptcy case.
“Subject to certain exceptions and conditions, the Company will be obligated to prepay or offer to prepay, as the case may be, all or a portion of the obligations under the Exit Revolving Credit Facility with the net cash proceeds of certain asset sales, with cash from its balance sheet in order to remain in compliance with a collateral coverage ratio and concentration limits and in connection with a change of control.” Spirit Airlines pointed out that the facility will bear interest at a variab.
