Spirit Airlines slates IPO proceeds for notes, preferreds payments

By Jennifer Chiou

New York, Sept. 17 - Spirit Airlines, Inc. plans to use a portion of the proceeds from its $300 million initial public offering of common stock to make repayments on its preferred stock and notes, according to an S-1 filed with the Securities and Exchange Commission.

Specifically, the Miramar, Fla.-based airline intends to:

• Repay its $129,429,000 of 17% tranche A notes and $118,942,000 of 17% tranche B notes;

• Redeem certain outstanding shares of its class A and class B preferred stock; and

• Pay three individual holders of its subordinated notes a $450,000 fee.

Spirit added that if it has yet to pay commitment fees in connection with the renewal of its letter-of-credit facility in December 2008, it will pay the $3.6 million of fees using any remaining proceeds.

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