Spirit Airlines to offer $600 million five-year bonds

/ / News

Spirit Airlines Inc. said Monday it is planning to issue $600 million in five-year bonds via two Cayman Islands-based subsidiaries in a private deal. The notes will be guaranteed by Spirit and certain units, and will be secured by a first priority lien on the discount airline’s loyalty program, and other intellectual property. Proceeds will be lent to Spirit after depositing a portion in a reserve account. Airlines have been crushed during the coronavirus pandemic as travelers have stayed away and flights have been grounded. Shares were up 1.1% premarket, but have fallen 44% in the year to date, while the US Global JETS ETF has fallen 41% and the S&P 500 has gained 8.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.