Spirit Airlines Granted Debt Refinancing Extension, Shares Soar 46% Pre-Market

Oct 21, 2024, 12:32 PM

Spirit Airlines has been granted an extension on its debt refinancing deadline from October 21 to December 23, 2024. The budget carrier, which has been grappling with a significant debt load due in 2025, has borrowed the entire $300 million available under its senior secured revolving credit facility, maturing in September 2026. Additionally, Spirit Airlines reaffirmed its 2024 year-end liquidity target of over $1 billion. Following the announcement, Spirit Airlines' shares soared, recording a 46% increase in pre-market trading. The extension and additional borrowing have provided the airline with a crucial lifeline, potentially averting bankruptcy. This comes after Spirit Airlines shares hit a record low as the Monday debt refinancing deadline loomed.