Miami-based hedge fund Citadel Advisors is among the group of Spirit Airlines (NK, Fort Lauderdale International) bondholders that will enter ownership following the bankruptcy-stricken carrier’s restructuring.
The investors are all senior secured noteholders and also include Pacific Investment Management Co. (Pimco), Western Asset Management Co., AllianceBernstein L.P., and Arena Capital Advisors, LLC. According to a court filing, the group holds the 8% senior secured noted issued by Spirit due in 2025.
The notes will be converted to equity after the restructuring. The same will happen with convertible bonds, according to Chapter 11 bankruptcy filing plans.
Entities or funds linked to Citadel Advisors own USD149.3 million worth of the senior secured notes, Pacific Investment Management owns USD136.4 million worth, Western Asset Management USD106.9 million, AllianceBernstein USD97.3 million, and Arena Capital Advisors USD95.6 million.
The restructuring also foresees that around USD795 million senior and convertible notes will be turned into equity in the airline. The carrier is also seeking additional capitalisation via a backstopped equity rights offering and, in addition, plans on issuing new senior secured notes in the value to USD700 million and convertible notes worth USD140 million.
Spirit Airlines recently received permission to sell five of its A320-200s to GA Telesis. It filed for Chapter 11 bankruptcy on November 18, with the support of its bondholders.
