DANIA BEACH, Fla. – Spirit Airlines (NYSE: SAVE) has successfully emerged from its financial restructuring, completing a consensual deleveraging transaction that equitizes approximately $795 million in funded debt. With a stronger balance sheet and enhanced financial flexibility, Spirit is now better positioned for long-term success and continued transformation in the low-fare travel sector.
Key Restructuring Milestones
- $795 million in funded debt converted to equity, significantly reducing leverage.
- $350 million equity investment from existing investors to support future initiatives and guest experience enhancements.
- Plan of Reorganization confirmed by the U.S. Bankruptcy Court for the Southern District of New York, receiving overwhelming support from loyalty and convertible noteholders.
- New Board of Directors formed, featuring industry and financial leaders to guide Spirit’s next phase of growth.
Commitment to Growth and Customer Experience
Spirit will continue to be led by Ted Christie, President and CEO, and its existing executive team, with a renewed focus on operational efficiency and customer service improvements.
Ted Christie, President and CEO of Spirit Airlines, stated:
“We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience. Throughout this process, we’ve made meaningful progress in enhancing our product offerings while focusing on returning to profitability. Today, we’re moving forward with our strategy to redefine low-fare travel with new, high-value travel options.”
Leadership and Governance Enhancements
Spirit’s reconstituted Board of Directors will include:
- Robert A. Milton
- David N. Siegel
- Timothy Bernlohr
- Eugene I. Davis
- Andrea F. Newman
- Radha Tilton
- Ted Christie, President & CEO
Christie added:
“I’m incredibly proud of our team members for their dedication to our guests and each other throughout this process. Despite the challenges we’ve faced, we are emerging as a stronger and more focused airline. We also extend our gratitude to our outgoing board members for their invaluable contributions and service.”
Post-Restructuring Trading and Market Plans
- Spirit Airlines, Inc.’s common stock has been canceled.
- Newly issued shares, now held by Spirit’s new owners, are expected to trade in the over-the-counter (OTC) market.
- Spirit intends to re-list on a major stock exchange as soon as reasonably practicable following the Effective Date of its Plan of Reorganization.
With a solid financial foundation, new investment, and a clear strategy, Spirit Airlines is now poised to redefine affordable travel and deliver an enhanced experience to its passengers.
