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Spirit announced that it intends to raise $600 million in loyalty program-backed debt. The private placement will be secured by the assets and intellectual property of the Miramar, Florida-based carrier’s Free Spirit and Spirit Saver$ Club programs.
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Spirit AirlinesSpirit Airlines is using it’s customer loyalty program to secure debt. Originally, the amount was $500 million, but a subsequent airline filing of November 10 states the amount has been icreased to $600 million.
According to the original November 9 filing, the debt will be “secured” with the airline’s “Co-branded credit card programs and Spirit Saver$ Club program and intellectual property utilized in connection with the loyalty program.”
