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Spirit Aviation Holdings, Inc. (NYSE American:FLYY) announced Thursday that it has amended its existing card processing agreement with U.S. Bank National Association and fully drew $275 million from its revolving credit facility. The information is based on a press release statement and a filing with the Securities and Exchange Commission.
According to the filing, Spirit Aviation’s subsidiary, Spirit Airlines (OTC:SAVEQ), LLC, entered into two amendments to its card processing agreement with U.S. Bank, effective August 15 and August 20. Under the amended terms, Spirit agreed to transfer $50 million in cash to a pledged account in favor of U.S. Bank. Additionally, U.S. Bank may now hold back up to $3 million per day until its exposure is fully collateralized, and Spirit is required to maintain full collateralization as exposure levels change.
In exchange, U.S. Bank extended the agreement’s term from the current December 31, 2025 expiration to December 31, 2027, with two automatic one-year renewals unless either party provides at least 90 days’ notice of non-renewal. The bank also removed an existing minimum liquidity trigger for holdbacks under the agreement.
On Thursday, Spirit borrowed the entire available amount of $275 million under its senior secured revolving credit facility. This facility, which was amended and restated on March 13, 2025, includes Citibank, N.A. as the administrative agent and Wilmington Trust as the collateral agent. The borrowings will mature on September 30, 2026.
Spirit stated the borrowed funds will be used for general corporate purposes and to address collateral posting requirements under the extended card processing agreement.
Additional terms of the card processing agreement remain as previously disclosed in Spirit’s prior filings, including its 2024 annual report and earlier SEC reports.
Spirit Aviation Holdings, Inc. trades on the NYSE American under the ticker FLYY.
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