Spirit Airlines talks $150 million five-year convertibles to yield 4.5%-5%, up 25%-30%

By Abigail W. Adams

Portland, Me., May 6 – Spirit Airlines Inc. plans to price $150 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 4.5% to 5% and an initial conversion premium of 25% to 30%, according to a market source.

Citigroup Global Markets Inc, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc. are joint bookrunners for the registered offering, which carries a greenshoe of $22.5 million.

The notes are non-callable.

Concurrently with the convertible notes offering, the company will price a secondary offering of 12 million shares of common stock.

The secondary offering carries a greenshoe of 1.8 million shares.

Proceeds will be used for general corporate purposes.

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

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