Overview

• The Wall Street Journal reported that Spirit retained PJT Partners to explore strategic alternatives, signaling preparation for potential major restructuring.
• Spirit borrowed the entire $275 million available under its revolving credit facility and secured a two‑year extension of its Elavon/U.S. Bank processing deal through 2027.
• To maintain card processing, Spirit pledged $50 million in cash and agreed to daily holdbacks of up to $3 million until U.S. Bank’s exposure is fully collateralized.
• Moody’s cut the airline’s rating to Caa3 and projected more than $500 million of cash burn in 2025, following an earlier downgrade by Fitch.
• Lessors have contacted other carriers about taking Spirit’s Airbus jets, while the company pursues capacity cuts, asset sales, and pilot furloughs and downgrades to raise cash and reduce costs.