Spirit Airlines is working with advisers to address its debt maturities after a proposed acquisition by JetBlue Airways was blocked last month, WSJ Pro Bankruptcy reported. The regional airline has brought on law firm Davis Polk & Wardwell and investment bank Perella Weinberg to explore ways to address its $1.1 billion of 8% senior secured notes due 2025 and $500 million of convertible bonds maturing 2026. The company has said that it is exploring ways to refinance its near-term maturities. Analysts following the company said Spirit has a number of options, including distressed exchanges such as swapping the debt, which is trading at depressed levels, for a combination of debt and equity to extend the maturity on the notes. The 2025 notes last traded at roughly 70 cents for a yield of about 33% Thursday morning, according to a trader. Spirit on Thursday reported lower revenue for the fourth quarter, but the loss came in narrower than expected. The company outlined some of its plans to turn things around after years of losses. Chief Executive Ted Christie said demand for domestic U.S. flights appears to be rebounding to start the new year.
