Spirit Airlines Ch.11
#531
That/It/Thang
Joined APC: Aug 2020
Posts: 2,945
#533
Gets Weekends Off
Joined APC: Mar 2021
Posts: 1,345
#535
Gets Weekends Off
Joined APC: Sep 2020
Posts: 354
Then how are they going to buy Spirit? Take out more debt? What are they waiting for?
#536
Gets Weekends Off
Joined APC: Apr 2019
Posts: 228
F9 would have to take NKs $3.3B in debt, including a $1.1B secured debt payment due in less than a year plus another $500M due in 2026. F9 has about $650M cash on hand according to their last 10Q filing. The combined entity would have $7.4B of debt which makes it even more leveraged than American, compared to total revenue. Spirit only has cash on hand because it sold planes this year. NKs debt is rated as "junk" so refinancing it would be at very high interest rates, probably higher than a combined F9/NK profit margin.
If F9 acquired NK as an operating airline it has to cover NKs operating cash outflow problem as well and would likely run out of cash before any merger synergies can be attained.
The best thing F9 can do is see if they can purchase assets in BK at a discount rather than taking on any of that debt. Unfortunately they will have to compete with other airlines that have far more cash for those gates and planes.
If F9 acquired NK as an operating airline it has to cover NKs operating cash outflow problem as well and would likely run out of cash before any merger synergies can be attained.
The best thing F9 can do is see if they can purchase assets in BK at a discount rather than taking on any of that debt. Unfortunately they will have to compete with other airlines that have far more cash for those gates and planes.
#537
Gets Weekends Off
Joined APC: Sep 2020
Posts: 354
"As a result of these actions, as of December 31, 2021, we had $1,679.8 million of liquidity comprised of unrestricted cash and cash equivalents, short-term investment securities and funds available under our revolving credit facility due in 2024"
F9 would have taken that cash to add to its own as part of the merger. B6 was offering a "cash only" purchase, which is better for shareholders because they don't get issued F9 paper which would have been diluted. Also those noted due in 2025 were still over 3 years away and both F9 and NK had ample cash to cover them.
Also NK didn't have a -30% profit margin (loss) and hadn't sold a bunch of planes to keep the operation going.
The situation is MUCH different today than Feb 2022 which was 32 months ago.
Stopping a slow rolling boulder is easy to do, but at this point the boulder is in a freefall and will crush you if you try to catch it.
#538
On Reserve
Joined APC: Apr 2024
Posts: 20
ways since the failed merger attempts and lost a certain amount of value as a business,
those other mergers wanted to go ahead with the debts due.
now they may be able to buy NK for a quarter of the price they offered in 2022 or even less.
Im no economist or expert but it seems like if
done correctly it could be a good deal with F9
bring on the staple
#539
Gets Weekends Off
Joined APC: Aug 2015
Position: Underpaid, LCC
Posts: 277
NK probably has underperformed in some
ways since the failed merger attempts and lost a certain amount of value as a business,
those other mergers wanted to go ahead with the debts due.
now they may be able to buy NK for a quarter of the price they offered in 2022 or even less.
Im no economist or expert but it seems like if
done correctly it could be a good deal with F9
bring on the staple
ways since the failed merger attempts and lost a certain amount of value as a business,
those other mergers wanted to go ahead with the debts due.
now they may be able to buy NK for a quarter of the price they offered in 2022 or even less.
Im no economist or expert but it seems like if
done correctly it could be a good deal with F9
bring on the staple
ALPA/ALPA so a staple wouldn’t happen. The main points of an SLI are date of hire, relative seniority, and career expectations, and maybe size of company in some cases. If NK/F9 get together it would be some sort of a hybrid of each point. Just an opinion.
#540
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Thread Starter
Joined APC: Oct 2017
Posts: 3,274
this isn’t the 1990s or early 2000s anymore…
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