US Post Petition: Spirit Airlines – Chapter 11 Bookend

Spirit Airlines filed a prearranged chapter 11 bankruptcy in the Southern District of New York on Nov. 18 carrying $6.8bn in prepetition funded, seeking a debt-for-equity restructuring swap with its prepetition bondholders. The ultra-low-cost carrier confirmed its chapter 11 plan on Feb. 20 and emerged on March 12, ultimately slashing $800mn in prepetition debt. 

The Davis Polk-led company funded its exit from bankruptcy with $840mn in new five-year secured notes and a $350mn backstopped rights offering. The backstopping parties, consisting of prepetition bondholders, collected a 10% backstop premium.