Spirit Airlines has announced an extension of its debt refinancing agreement with U.S. Bank National Association, its credit card processor, pushing the deadline to December 23, 2024. Initially, on September 9, 2024, the company extended the deadline for its 2025 Notes from September 20, 2024, to October 21, 2024.
In the regular trading session, Spirit Airlines' shares closed at $1.47, marking a 3% decrease. However, in after-hours trading, the stock saw a remarkable rise of 29%, reaching $1.91.
The airline is actively engaged in discussions with holders of its senior secured notes due in 2025 and convertible senior notes due in 2026, focusing on their respective maturities.
According to the company's projections, they anticipate ending the year 2024 with more than $1.0 billion in liquidity. This figure includes unrestricted cash, cash equivalents, short-term investment securities, and additional liquidity initiatives, contingent upon the successful completion of those initiatives currently underway.
Earlier this week, Spirit Airlines accessed the full $300 million available under their revolving credit facility. The maturity date for borrowings under this facility is September 30, 2026. However, if the senior secured notes due 2025 are not extended or refinanced by June 20, 2025, or the convertible senior notes due 2026 are not addressed by February 12, 2026, the maturity date will be automatically adjusted to June 21, 2025, or February 13, 2026, respectively.
Furthermore, the Wall Street Journal reported earlier this month that Spirit Airlines is in discussions with bondholders about the terms of a potential bankruptcy filing following the unsuccessful merger with JetBlue Airways.
