Chicago, May 7 – Spirit Airlines Inc. sold an upsized issue of $175 million five-year convertible notes after the market close on Thursday with a 4.75% coupon, according to a press release and a market source.
The new notes were talked for a coupon of 4.5% to 5% and an initial conversion premium of 25% to 30%. The issue was expected to be $150 million.
Citigroup Global Markets Inc, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc. are joint bookrunners for the registered offering, which carries an also upsized greenshoe of $26.25 million.
The notes are non-callable and putable based on certain conditions.
The notes will be settled via cash, shares or a combination thereof based on the issuer’s election.
Concurrently with the convertible notes offering, the company has priced an upsized secondary offering of 17,500,000 shares of common stock. The company was expected to sell 12 million shares.
The secondary offering carries a greenshoe of 2,625,000, increased from 1.8 million shares.
Proceeds will be used for general corporate purposes.
Spirit Airlines is a Miramar, Fla.-based airline.
| Issuer: | Spirit Airlines Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million, upsized from $150 million
|
| Greenshoe option: | $26.25 million, upsized from $22.5 million
|
| Maturity: | 2025
|
| Bookrunners: | Citigroup Global Markets Inc, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc.
|
| Coupon: | 4.75%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $12.75
|
| Conversion rate: | 78.4314
|
| Call options: | Non-callable
|
| Put options: | Certain conditions
|
| Pricing date: | May 7
|
| Settlement date: | May 15
|
| Distribution: | SEC registered
|
| Stock symbol: | NYSE: SAVE
|
| Stock price: | $10.00
|
| Market capitalization: | $720.36 million
|
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