Chicago, April 28 – Spirit Airlines Inc. sold $440 million of five-year convertible notes on Wednesday with a 1% coupon and an initial conversion premium of 40%, according to a press release.
A market source said the notes were talked with a coupon of 1% to 1.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.
Barclays, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are bookrunners for the registered offering, which carries a greenshoe of $60 million.
The notes are non-callable until May 15, 2024 and then subject to a 130% hurdle.
The notes can be settled in cash or a combination of cash and shares of common stock, at Spirit’s election.
Concurrently, the company will repurchase for cash a portion of its 4.75% convertible notes due 2025.
The company also conducted a secondary direct offering of its common stock to holders of the 4.75% convertible notes. Spirit priced 10,594,073 shares of common stock at $35.05 per share.
Proceeds from the convertible notes offering will be used to fund the repurchase of the 4.75% convertible notes and for general corporate purposes.
Proceeds from the secondary offering will be used to repurchase up to $340 million in principal of the 8% senior secured notes due 2025 at a redemption price of 108.
Spirit Airlines is a Miramar, Fla.-based airline.
| Issuer: | Spirit Airlines Inc.
|
| Issue: | Convertible notes
|
| Amount: | $440 million
|
| Greenshoe: | $60 million
|
| Maturity: | 2026
|
| Bookrunners: | Barclays, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
|
| Coupon: | 1%
|
| Conversion premium: | 40%
|
| Conversion price: | $49.07
|
| Conversion rate: | 20.3791
|
| Call options: | Non-callable until May 15, 2024 and then subject to a 130% hurdle
|
| Trade date: | April 28
|
| Settlement date: | April 30
|
| Distribution: | SEC registered
|
| Price talk: | Coupon of 1% to 1.5% and an initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | NYSE: SAVE
|
| Stock price: | $35.05 on April 28
|
| Market cap: | $3.43 billion
|
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