Appleby acts as Cayman counsel to initial purchasers in US$850 million financing to Spirit Airlines leveraged by its Customer Loyalty Program and Brand IP
Appleby has acted as Cayman Islands counsel to Barclays Bank Plc and the other initial purchasers in a private offering of US$850 million in principal amount of 8.00% senior secured notes offered by two newly-formed Spirit subsidiaries and guaranteed by Spirit Airlines, Inc. The financing is secured by Spirit’s customer loyalty programs and brand intellectual property.
Spirit also announced it no longer intends to participate in the U.S. Treasury’s secured loan program under the CARES Act, given the successful completion of the company’s secured note offering which Spirit have stated now gives them one of the strongest and most liquid balance sheets in the industry.
Citigroup, Deutsche Bank Securities and Morgan Stanley joined Barclays as joint lead bookrunners for the deal.
In an innovative approach being taken in the aviation industry given the current challenges faced, the transaction is structured to be bankruptcy remote with the formation of Cayman Islands co-issuers and guarantors and involves a covenant structure which represents a hybrid between a securitisation and a corporate debt issuance.
Appleby was instructed by US law firm Milbank LLP and was led by Cayman Islands partners Benjamin Woolf and Caroline Barton with senior associate Alexandra Simpson also acting on the matter.
