Citadel Among Bondholders Taking Ownership of Spirit Airlines
Miami-based hedge fund Citadel Advisors is part of the group of senior secured bondholders set to assume ownership of Spirit Airlines as part of the airline’s restructuring under Chapter 11 bankruptcy. Other major investors include Pacific Investment Management Co. (Pimco), Western Asset Management Co., AllianceBernstein L.P., and Arena Capital Advisors, LLC.
According to court filings, these investors hold Spirit’s 8% senior secured notes due in 2025, which will be converted into equity as part of the restructuring. Convertible bonds will undergo the same process, aligning with the bankruptcy plan.
Key holdings among the bondholders include:
- Citadel Advisors: $149.3 million
- Pimco: $136.4 million
- Western Asset Management: $106.9 million
- AllianceBernstein: $97.3 million
- Arena Capital Advisors: $95.6 million
In total, $795 million in senior and convertible notes will be converted to equity. Spirit Airlines is also pursuing additional capital through a backstopped equity rights offering and plans to issue $700 million in new senior secured notes and $140 million in convertible notes to strengthen its financial position.
Spirit Airlines filed for Chapter 11 bankruptcy on November 18, with support from its bondholders. It recently gained court approval to sell five of its A320-200 aircraft to GA Telesis. These measures aim to position Spirit for financial recovery and operational stability as it emerges from bankruptcy.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com