Spirit Airlines Announces Comprehensive Agreement to Deleverage Balance Sheet and Position the Company for Long-Term Success¯as a Leading Low-Fare Carrier

Flights, Ticket Sales, Reservations and All Other Operations Continue as Normal

Restructuring Support Agreement Already Signed by a Supermajority of Spirit‘s Bondholders¯

Voluntary Prearranged Chapter 11 Proceedings Commenced to Implement the Agreed Deleveraging and Recapitalization Transactions¯

Receives Backstopped Commitments for $350 Million Equity Investment and $300 Million in Debtor-in-Possession  Financing from Existing Bondholders; Vendors, Aircraft Lessors and Holders of Secured Aircraft  Indebtedness to Be Paid in the Ordinary Course and Will Not be Impaired¯

DANIA BEACH, Fla., Nov. 18, 2024 /PRNewswire/ — Spirit Airlines (NYSE:), Inc. (“Spirit” or the “Company”) (NYSE: SAVE) today announced that it has entered into a restructuring support agreement (the “RSA”) supported by a supermajority of Spirit‘s loyalty and convertible bondholders on the terms of a comprehensive balance sheet restructuring. The restructuring is expected to reduce Spirit‘s debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value.¯  

In connection with the RSA, Spirit has received backstopped commitments for a $350 million equity investment from existing bondholders and will complete a deleveraging transaction to equitize $795 million of funded debt. To implement the RSA, the Company has commenced a prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York (the “Court”). Existing bondholders are also providing $300 million in debtor-in-possession (“DIP”) financing, which, together with Spirit‘s available cash reserves and cash provided by operations, is expected to further support the Company through the chapter 11 process.  

Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal. The chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit. Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired.

“I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive…