A Spirit Airlines flight prepares for departure at Austin-Bergstrom International Airport in Austin, Texas, on February 12, 2024.
Brandon Bell Getty Images
Spirit Airlines was said to have reached an agreement with the credit card processor again complete debt refinancing timeline for December, hours before it was set to hit the deadline.
Spirit said in a filing last Friday that earlier this week it drew down all of its $300 million revolving credit facility and expects to end the year with more than $1 billion in liquidity.
“As previously disclosed, the Company remains in active and constructive discussions with holders of senior secured notes due 2025 and senior convertible notes due 2026 regarding their respective maturities,” Spirit said in a filing late Friday.
The deadline was previously set in September and had been extended to October 21 before the change took place. The airline’s stock closed last Friday, down about 3%, at less than $1.50 per share.
The Miramar, Florida-based airline has laid off employees, reduced schedules and delayed plane deliveries to save money over the past year.
Many planes have been grounded because of a Pratt & Whitney remember the engine. It has also reported weaker-than-expected orders and planned acquisitions by JetBlue Airways was scuttled after getting blocked by a federal judge on antitrust grounds.
Its stock has fallen more than 90% so far this year and nearly 40% so far in October alone.
Earlier this month, The Wall Street Journal said the carrier was considering filing for bankruptcy. Spirit and adviser Perella Weinberg Partners did not immediately comment on the matter.
