Spirit Air bondholders tap adviser Evercore ahead of debt talks

A group of Spirit Airlines Inc. bondholders have tapped Evercore Inc. as an adviser in anticipation of upcoming debt talks, according to people with knowledge of the situation. 

Evercore’s selection follows the earlier retention of Akin Gump Strauss Hauer & Feld for legal advice, Bloomberg previously reported. 

Spirit’s ability to manage more than $1 billion of debt that comes due in 2025 and 2026 has come into question after a federal judge blocked a tie-up with JetBlue Airways Corp., said the people, who asked not to be identified discussing a private matter. 

The group holds a majority of the company’s 8% notes due in 2025. That debt trades at around 72.25 cents on the dollar, up from lows of 51.5 cents a day after the court ruling. 

A representative with Spirit declined to comment, while messages left with Evercore were not immediately returned.

The budget airline is getting advice from law firm Davis Polk & Wardwell and investment bank Perella Weinberg Partners.

On last week’s quarterly earnings call, Spirit Chief Financial Officer Scott Haralson said “the company is aware of its 2025 and 2026 debt maturities and is assessing options to address those maturities when the time is appropriate,” though it is also appealing the court decision. 

The Miramar, Florida-based airline reported a smaller-than-expected quarterly loss and said it has enough liquidity to operate on its own.