Spirit Negotiates $475m in DIP Financing Amid Restructuring

Spirit Airlines has negotiated debtor-in-possession (DIP) financing of as much as $475 million from bondholders to support business operations during restructuring.

• DIP financing is subject to court approval
  • Expects $200 million immediately available upon court approval
  • Court hearing scheduled for Oct. 10
• Court approved its motion to reject 12 airport leases and 19 ground handling agreements
• Entered agreement with AerCap that resolves all claims, disputes
  • AerCap will pay spirit $150 million
  • Will reject leases on 27 aircraft
  • Future delviery of 30 aircraft
• Expects to announce agreements with additional lessors about new liquidity and fleet rationalization
• NOTE: Spirit Aviation Nears $455 ...