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Spirit files for USD300m IPO to repay debts; losses of USD2.8m in 1H2010

20-Sep-2010 2:24 PM

Spirit Airlines filed with the US Securities Regulators to raise up to USD300 million in an IPO (Reuters/Bloomberg, 18-Sep-2010). The LCC stated it would retain USD150 million of the net proceeds and use the remaining funds to repay debt and as a termination fee for professional services with Indigo Partners. The carrier reportedly owed USD264 million on notes as of 30-Jun-2010, including principal and accrued and unpaid interest. The carrier added that it posted a net loss of USD2.8 million in the six months ended 30-Jun-2010, compared with a net profit of USD41.5 million in 1H2009, with the results being affected by a pilots strike which hit booking levels.