Spirit Aviation, the parent company of Spirit Airlines, reached an agreement with its senior secured noteholders to amend its debtor-in-possession (DIP) credit agreement. The amendment provides for the previously agreed third funding round of an incremental $100 million. Minus OID, $50 million is useable by Spirit immediately, and the use of the remaining amount is subject to previously agreed conditions that relate to further progress on a standalone plan of reorganization or a strategic transaction. Spirit is currently in active negotiations on each of these possibilities.
“We are grateful to our lenders for continuing to support Spirit’s transformation, recognizing all the significant progress our team has made in recent months,” Dave Davis, president and CEO of Spirit, said. “We continue to provide high-value travel options, which benefit American consumers whether they fly with us or not, and look forward to welcoming our Guests aboard throughout this holiday season and into the future.”
