Why Spirit Airlines Stock Is Taking Off Monday

Spirit Airlines Inc SAVE shares are trading higher Monday after the company extended its debt refinancing deadline.

What To Know: Spirit Airlines on Friday announced that it reached an agreement with the U.S. Bank National Association to extend its existing credit card processing agreement to Dec. 23. The deadline was previously set to expire on Monday.

The company also announced in the filing that it borrowed all $300 million under its revolving credit facility and said it’s in ongoing discussions with holders of senior secured notes due 2025 and 2026.

“As previously disclosed, the Company remains in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 with respect to their respective maturities,” the company said in the filing.

Spirit noted that it expects to end the year with more than $1 billion in liquidity, which includes unrestricted cash and cash equivalents, short-term investment securities and additional liquidity initiatives that are currently in progress.

Check This Out: Spirit Airlines Extends Debt Deadlines, JetBlue Founder Suggests Frontier Group A More Suitable Match

Spirit Airlines shares are down more than 91% since the start of the year. The airline has faced selling pressure as planes were grounded due to an engine recall and the company’s planned acquisition of JetBlue Airways Corp JBLU was blocked by regulators. Spirit has also missed analyst estimates on the top and bottom lines in two straight quarters, per Benzinga Pro.

Earlier this month, the Wall Street Journal reported that Spirit was exploring potential bankruptcy options as it continues to battle financial challenges, including mounting pressure on its $3.3 billion debt load.

SAVE Price Action: Spirit Airlines shares were up 57.1% at $2.30 at the time of publication, according to Benzinga Pro.

Photo: Stela Di from Pixabay.