Spirit Airlines’ $850 Million Senior Notes Offering

Davis Polk advised Spirit Airlines, Inc. in the transaction. Appleby acted as Cayman Islands counsel to Barclays Bank Plc and the other initial purchasers.

Spirit IP Cayman Ltd. (the “Brand IP Issuer”) and Spirit Loyalty Cayman Ltd. (the “Loyalty IP Issuer” and, together with the Brand IP Issuer, the “Issuers”) executed an offering of $850 million aggregate principal amount of 8% senior notes due 2025.

Each Issuer is a Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of Spirit. The notes are guaranteed by Spirit and certain subsidiaries of Spirit. The notes are secured by, among other things, a first priority lien on the core assets of Spirit’s loyalty programs (comprised of cash proceeds from its Free Spirit co-branded credit card programs, its $9 Fare Club program membership fees and intellectual property utilized in connection with the loyalty programs) as well as Spirit’s brand intellectual property.

Spirit Airlines is committed to delivering the best value in the sky while providing an extraordinary guest experience. Spirit is the leader in providing customizable travel options starting with an unbundled fare.

Citigroup, Deutsche Bank Securities and Morgan Stanley joined Barclays as joint lead bookrunners for the deal.

The Davis Polk finance team advising Spirit Airlines included partners Monica Holland (Picture) and Scott M. Herrig, counsel Darren Mahone and associates Bernard Tsepelman, Stephen M. Rettger and Tom Wolfe. The Davis Polk capital markets team included partners John B. Meade and Yasin Keshvargar and associates Heita Miki, Claudia Carvajal Lopez and Meaghan Kennedy. Intellectual property advice was provided by partner Frank J. Azzopardi, counsel Daniel F. Forester and associates Samantha Lefland, Jennifer Leather and Christopher C. Woller. The Davis Polk corporate team included partners Louis L. Goldberg and Brian Wolfe and associates Nicolas R. Yamagata, Lucas Wozny and Adam Horvath. Restructuring advice was provided by partner Darren S. Klein and associate Thomas S. Green. Tax advice was provided by partner Po Sit and associate Liang Zhang.

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.

Involved fees earner: Caroline Barton – Appleby; Alexandra Simpson – Appleby; Benjamin Woolf – Appleby; Frank Azzopardi – Davis Polk & Wardwell; Claudia Carvajal Lopez – Davis Polk & Wardwell; Daniel Forester – Davis Polk & Wardwell; Louis Goldberg – Davis Polk & Wardwell; Thomas Green – Davis Polk & Wardwell; Scott Herrig – Davis Polk & Wardwell; Monica Holland – Davis Polk & Wardwell; Adam Horvath – Davis Polk & Wardwell; Meaghan Kennedy – Davis Polk & Wardwell; Yasin Keshvargar – Davis Polk & Wardwell; Darren Klein – Davis Polk & Wardwell; Jennifer Leather – Davis Polk & Wardwell; Samantha Lefland – Davis Polk & Wardwell; Darren Mahone – Davis Polk & Wardwell; John Meade – Davis Polk & Wardwell; Heita Miki – Davis Polk & Wardwell; Stephen Rettger – Davis Polk & Wardwell; Po Sit – Davis Polk & Wardwell; Bernard Tsepelman – Davis Polk & Wardwell; Tom Wolfe – Davis Polk & Wardwell; Brian Wolfe – Davis Polk & Wardwell; Christopher Woller – Davis Polk & Wardwell; Lucas Wozny – Davis Polk & Wardwell; Nicolas Yamagata – Davis Polk & Wardwell; Liang Zhang – Davis Polk & Wardwell;

Law Firms: Appleby; Davis Polk & Wardwell;

Clients: Barclays Bank; Citigroup Inc.; Deutsche Bank Securities; Morgan Stanley; Spirit Airlines, Inc.;

Author: Ambrogio Visconti