Spirit Airlines, Inc. (NYSE: SAVE) has announced that Spirit IP Cayman Ltd. and Spirit Loyalty Cayman Ltd. intend to commence a private offering of USD 600 million in aggregate principal amount of senior secured notes due 2025, the company said.
The Notes will be guaranteed by Spirit and certain subsidiaries of Spirit. The Notes will be secured by, among other things, a first priority lien on the core assets of Spirit´s loyalty programs (comprised of cash proceeds from its Free Spirit co-branded credit card programs, its USD 9 Fare Club program membership fees, and intellectual property utilized in connection with the loyalty programs) as well as Spirit´s brand intellectual property.
The Issuers intend to lend the net proceeds from the offering of the Notes to Spirit, after depositing a portion of such proceeds in a reserve account.
Spirit IP Cayman Ltd. and Spirit Loyalty Cayman Ltd. are newly formed Cayman Islands exempted companies incorporated with limited liability and indirect wholly owned subsidiaries of Spirit.
Spirit Airlines provides customizable travel options starting with an unbundled fare, allowing guests to pay only for the options they choose. Spirit serves destinations throughout the US, Latin America and the Caribbean.