Spirit Airlines has secured up to $300 million worth of financing in the form of a senior secured revolving credit facility.
Detailed within a securities filing with the US Securities and Exchange Commission dated January 16, the financing includes an available $275 million as revolving loans and letters of credit and $25 million as an additional uncommitted amount that can be accessed if needed.
The US Securities and Exchange Commission noted that the “exit revolving credit facility” will be available to draw upon once the Florida headquartered airline emerges from financial restructuring. The money will go towards working capital and general corporate needs.
This financing comes after it has been widely reported that Spirit has laid off 200 of its employees, as part of an effort to minimise cost at the airline.
“As you all know, we’re facing significant challenges with our business,” wrote Ted Christie, CEO of Spirit, in a message to employees that was viewed by The Wall Street Journal. “The bottom line is, we need to run a smaller airline and get back on better financial footing.”
As of late December 2024, the airline employed just over 13 thousand staff.
In November 2024 Spirit Airlines disclosed that it entered into a restructuring support agreement (RSA) that would be implemented while the company was in a pre-arranged Chapter 11 bankruptcy protection process in the US.
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