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March 1, 2011 Print | ShareThis IPO Watch: Spirit Airlines Gears Up for Spring Break Offering


(Westlaw Business) A $300 million IPO could mean a nice spring break for Ft. Lauderdale’s Spirit Airlines. Backed by investors Oaktree Capital Management and Indigo Partners, the nascent carrier will soon list as SAVE on NASDAQ.

Anthony J. Richmond and Robert W. Phillips of Latham & Watkins (Menlo Park) represented Spirit. Leslie N. Silverman of New York’s Cleary Gottlieb Steen & Hamilton advised the underwriters.

The company plans to use half the proceeds ($150 million) for general corporate purposes including cash reserves. Spirit has also allocated approximately $5 million for “commitment fees owing to affiliates of Oaktree and Indigo that provided guarantees in connection with [Spirit’s] letter of credit facility.” Indigo will also receive $1.6 million in connection with the termination of its professional services contract with Spirit.

Oaktree gained control of Spirit after investments in 2004 and 2005. The company reorganized in 2006, with Indigo acquiring a majority stake. Recapitalized in September 2010, Spirit has $137.3 million in loans outstanding to Oaktree (17%), and another $137.3 million owing to Indigo.

The carrier, which began as a trucking company in the 1960s, now focuses on Latin American and Caribbean routes as a low-cost airline.