Spirit Airlines gets $110 million two-year revolving facility

Wendy Van Sickle

Columbus, Ohio, March 30 – Spirit Airlines, Inc. entered into a credit agreement on Monday providing for a two-year senior secured revolving credit facility with an initial commitment amount of $110 million, subject to borrowing base availability, according to an 8-K filing with the Securities and Exchange Commission.

There is an option to increase the overall commitment amount up to $350 million.

Borrowings bear interest at Libor plus 200 basis points.

The company is required to maintain, so long as any loans or letters of credit are outstanding under the revolver, unrestricted cash and cash equivalents and unused commitments available of not less than $400 million, of which no more than $200 million may be derived from unused commitments under the revolver and a minimum ratio of the borrowing base of the collateral of not less than 1.0 to 1.0.

The company may pledge as collateral certain take-off and landing rights at LaGuardia Airport; certain eligible aircraft spare parts and ground support equipment; aircraft, spare engines and flight simulators; real property assets; and cash and cash equivalents.

Citibank, NA is the administrative agent. Wilmington Trust, NA is the collateral agent.

Spirit Airlines is a Miramar, Fla.-based low-fare airline.

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