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Spirit Airlines Files Form 12b-25

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Spirit Airlines (NYSE: SAVE) has filed Form 12b-25 with the SEC, delaying its Q3 2024 10-Q filing due to ongoing restructuring negotiations with Noteholders. The company is in advanced discussions regarding its senior secured notes due 2025 and convertible senior notes due 2026. The potential restructuring would not affect general creditors, employees, customers, vendors, or aircraft lessors, but would likely result in the cancellation of existing equity.

Q3 2024 operating margins are estimated to be 12 percentage points lower than Q3 2023, with total operating revenues decreasing by approximately $61 million and operating expenses increasing by about $46 million year-over-year.

Spirit Airlines (NYSE: SAVE) ha presentato il modulo 12b-25 alla SEC, ritardando la presentazione del 10-Q per il terzo trimestre del 2024 a causa di trattative di ristrutturazione in corso con i titolari di obbligazioni. L'azienda è in discussioni avanzate riguardo ai propri titoli garantiti senior in scadenza nel 2025 e ai convertibili senior in scadenza nel 2026. La potenziale ristrutturazione non influisce sui creditori generali, dipendenti, clienti, fornitori o locatori di aeromobili, ma potrebbe comportare la cancellazione del capitale esistente.

Si stima che i margini operativi del terzo trimestre del 2024 siano 12 punti percentuali inferiori rispetto al terzo trimestre del 2023, con ricavi operativi totali in diminuzione di circa 61 milioni di dollari e costi operativi in aumento di circa 46 milioni di dollari rispetto all'anno precedente.

Spirit Airlines (NYSE: SAVE) ha presentado el formulario 12b-25 a la SEC, retrasando la presentación de su 10-Q para el tercer trimestre de 2024 debido a negociaciones de reestructuración en curso con los tenedores de bonos. La compañía está en discusiones avanzadas sobre sus notas senior garantizadas con vencimiento en 2025 y notas senior convertibles con vencimiento en 2026. La posible reestructuración no afectará a los acreedores generales, empleados, clientes, proveedores ni arrendatarios de aeronaves, pero es probable que resulte en la cancelación de la capital existente.

Se estima que los márgenes operativos del tercer trimestre de 2024 serán 12 puntos porcentuales más bajos que los del tercer trimestre de 2023, con ingresos operativos totales disminuyendo en aproximadamente 61 millones de dólares y los gastos operativos aumentando en alrededor de 46 millones de dólares en comparación con el año anterior.

Spirit Airlines (NYSE: SAVE)는 SEC에 12b-25 양식을 제출하여 2024년 3분기 10-Q 제출을 연기했습니다. 이는 채권자들과 진행 중인 구조 조정 협상 때문입니다. 회사는 2025년 만기 되는 선순위 담보 노트 및 2026년 만기 되는 전환 선순위 노트에 대해 심도 깊은 논의를 진행 중입니다. 가능한 구조 조정은 일반 채권자, 직원, 고객, 공급업체 또는 항공기 임대업체에 영향을 미치지 않겠지만 기존 자본의 취소를 초래할 가능성이 높습니다.

2024년 3분기 운영 마진은 2023년 3분기보다 12 퍼센트 포인트 낮을 것으로 예상되며, 총 운영 수익은 약 6,100만 달러 감소하고 운영 비용은 전년 대비 약 4,600만 달러 증가할 것으로 보입니다.

Spirit Airlines (NYSE: SAVE) a déposé le formulaire 12b-25 auprès de la SEC, retardant le dépôt de son 10-Q pour le troisième trimestre de 2024 en raison de négociations de restructuration en cours avec les détenteurs d'obligations. La société est en discussion avancée concernant ses obligations sécurisées seniors arrivant à échéance en 2025 et ses obligations convertibles seniors arrivant à échéance en 2026. La restructuration potentielle n'affecterait pas les créanciers généraux, les employés, les clients, les fournisseurs ou les loueurs d'avions, mais pourrait entraîner l'annulation du capital existant.

Les marges opérationnelles du troisième trimestre 2024 devraient être inférieures de 12 points de pourcentage à celles du troisième trimestre 2023, avec des revenus d'exploitation totaux en baisse d'environ 61 millions de dollars et des dépenses d'exploitation augmentant d'environ 46 millions de dollars par rapport à l'année précédente.

Spirit Airlines (NYSE: SAVE) hat das Formular 12b-25 bei der SEC eingereicht und die Einreichung des 10-Q für das dritte Quartal 2024 aufgrund laufender Umstrukturierungsverhandlungen mit den Anleihegläubigern verzögert. Das Unternehmen befindet sich in fortgeschrittenen Gesprächen über seine besicherten Schuldverschreibungen mit Fälligkeit 2025 und umwandelbaren Anleihen mit Fälligkeit 2026. Die mögliche Umstrukturierung würde keine Auswirkungen auf allgemeine Gläubiger, Mitarbeiter, Kunden, Lieferanten oder Flugzeugvermieter haben, könnte jedoch zur Stornierung des bestehenden Eigenkapitals führen.

Die Betriebsmargen im dritten Quartal 2024 werden voraussichtlich 12 Prozentpunkte niedriger sein als im dritten Quartal 2023, wobei die Gesamterträge aus dem Betrieb um etwa 61 Millionen Dollar zurückgehen und die Betriebskosten im Vergleich zum Vorjahr um rund 46 Millionen Dollar steigen werden.

Positive
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Negative
  • Operating margins expected to decline by 12 percentage points YoY in Q3 2024
  • Total operating revenues decreased by $61 million compared to Q3 2023
  • Operating expenses increased by $46 million YoY
  • Potential restructuring likely to result in cancellation of existing equity
  • Delayed Q3 2024 Form 10-Q filing due to restructuring negotiations

Insights

Spirit Airlines' delayed Q3 2024 filing and ongoing restructuring discussions signal severe financial distress. The estimated 12% decline in operating margins, coupled with a $61 million decrease in revenues and $46 million increase in operating expenses, paints a concerning picture. Most critically, the company is negotiating with noteholders in a way that could lead to complete equity cancellation through a statutory restructuring.

The removal of change and cancellation fees has hurt revenues, while rising costs across multiple categories (aircraft rent, wages, landing fees) are squeezing margins. The only cost reduction came from fuel expenses, but this wasn't enough to offset other increases. The company's focus on protecting unsecured creditors, employees and operations while potentially wiping out shareholders suggests a Chapter 11 bankruptcy filing may be imminent.

DANIA BEACH, Fla., Nov. 12, 2024 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today announced that it had filed a Form 12b-25 with the Securities and Exchange Commission that is expected to be available on the SEC's EDGAR filing system on Wednesday, November 13, 2024, prior to the opening of the market session. That form will contain the following disclosure:

The Company is unable to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the "Q3 2024 Form 10-Q") by the prescribed due date without unreasonable effort or expense. As previously disclosed, the Company has been in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 (collectively, the "Noteholders") with respect to restructuring the obligations owed by the Company to the Noteholders, as well as exploring strategic alternatives and other ways to improve liquidity for the Company. The negotiations, with a supermajority of the Noteholders, have remained productive, have advanced materially and are continuing in the near term, but have also diverted significant management time and internal resources from the Company's processes for reviewing and completing its financial statements and related disclosures. If a definitive agreement with such Noteholders is reached and documented, it would be effectuated through a statutory restructuring that is not expected to impair general unsecured creditors, employees, customers, vendors, suppliers, aircraft lessors or holders of secured aircraft indebtedness, but, if effectuated, is expected to lead to the cancellation of the Company's existing equity. If a definitive agreement with the Noteholders is not reached, the Company will consider all alternatives.

The Company estimates its third quarter 2024 operating margin and adjusted operating margin will each be approximately 12 percentage points lower than the operating margin and adjusted operating margin reported for the third quarter 2023 due to lower total operating revenues and higher total operating expenses. Total operating revenues are estimated to have decreased approximately $61 million compared to the third quarter 2023 primarily due to lower average yields, including the negative impact from the Company no longer charging for change and cancellation fees. Total operating expenses are estimated to have increased approximately $46 million and adjusted operating expenses are estimated to have increased approximately $52 million compared to the third quarter 2023. Total operating expenses and adjusted operating expenses are estimated to be higher year over year primarily due to an increase in aircraft rent expense, other operating expense, salaries, wages and benefits, and landing fees and other rents expense. These increases were partially offset by a decrease in aircraft fuel expense.

About Spirit Airlines

Spirit Airlines (NYSE: SAVE) is a leading low-fare carrier committed to delivering the best value in the sky by offering an enhanced travel experience with flexible, affordable options. Spirit serves destinations throughout the United States, Latin America and the Caribbean with its Fit Fleet®, one of the youngest and most fuel-efficient fleets in the U.S. Spirit is committed to inspiring positive change in the communities it serves through the Spirit Charitable Foundation. Discover elevated travel options with exceptional value at spirit.com.

Investor inquiries:

Spirit Investor Relations
investorrelations@spirit.com

Media inquiries:

Spirit Media Relations
Media_Relations@spirit.com

Cautionary Statement Regarding Forward Looking Statements

This press release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") which are subject to the "safe harbor" created by those sections. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," and similar expressions intended to identify forward-looking statements. Forward-looking statements include, without limitation, the status of the Company's negotiations with the Noteholders and the possibility that the Company may voluntarily initiate a statutory restructuring process and the potential effects of the initiation of such statutory restructuring process on the Company's liquidity, results of operations and business. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors include, among others, the Company's ability to reach an agreement with the Noteholders, results of operations and financial condition, the competitive environment in our industry, our ability to keep costs low and the impact of worldwide economic conditions, including the impact of economic cycles or downturns on customer travel behavior and other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as supplemented in the Company's Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2024 and June 30, 2024. Furthermore, such forward-looking statements speak only as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to us, (ii) that we currently deem to be immaterial, or (iii) that could apply to any company, could also materially adversely affect our business, financial condition, or future results. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

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SOURCE Spirit Airlines, Inc.

FAQ

What is the expected impact of Spirit Airlines (SAVE) restructuring on shareholders?

If the restructuring agreement is effectuated, it is expected to lead to the cancellation of Spirit Airlines' existing equity, meaning current shareholders would likely lose their investment.

How much did Spirit Airlines (SAVE) revenue decline in Q3 2024?

Spirit Airlines' total operating revenues decreased by approximately $61 million compared to Q3 2023, primarily due to lower average yields and the elimination of change and cancellation fees.

Why is Spirit Airlines (SAVE) delaying its Q3 2024 10-Q filing?

Spirit Airlines is delaying its Q3 2024 10-Q filing due to ongoing restructuring negotiations with Noteholders, which have diverted significant management time and internal resources from financial statement preparation.

Spirit Airlines, Inc.

NYSE:SAVE

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DANIA BEACH