Spirit Airlines completed a $215 million private offering of class B(R) pass through certificates at the end of March.
In an SEC filing from April 2, 2025, Spirit said the proceeds will be used to acquire new equipment notes to be issued by the company. The proceeds from this issuance will repay $43 million of its outstanding series B equipment notes issued under the Spirit Airlines 2017-1 pass through certificates, as well as to pay transaction fees and for general corporate purposes.
The new series B(R) equipment notes will be secured by 27 A320 family aircraft. In addition, the notes will carry an 11% annual interest rate. Payments are scheduled for April 1 and October 1, commencing October 1, 2025. The final distribution of the notes is expected to be on February 15, 2030. The class B(R) certificates will be subordinate to Spirit's previously issued series 2015-1 and 2017-1 pass through certificates.
In addition, the airline has updated its fleet plan. The company had initially planned for 219 aircraft in its fleet by the end of 2025. The company now projects a total of 196 aircraft in its fleet. The company retired its last A319ceo in the first quarter. It expects 49 A320ceo, 91 A320neo, 22 A321ceo, and 34 A321neo in its fleet. The company noted it has 21 A320/A321 aircraft held for sale as of December 31, 2024.