SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 8, 2011
SPIRIT AIRLINES, INC.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
2800 Executive Way
Miramar, Florida 33025
(Address of principal executive offices, including Zip Code)
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
On September 8, 2011, Spirit Airlines, Inc. (the Company) executed a Second Amendment (the Amendment) to Signatory Agreement (as amended, the Agreement), effective as of September 6, 2011, by and between the Company and U.S. Bank, National Association (U.S. Bank). The Agreement governs acceptance of credit cards between the Company and U.S. Bank, the Companys largest credit card processor. As is standard in the airline industry, the Companys contractual arrangements with credit card processors permit them to retain a holdback or other collateral, which the Company records as restricted cash, when future air travel and other future services are purchased via credit card transactions. The required holdback is the percentage of the Companys overall credit card sales that its credit card processors hold to cover refunds to customers if the Company fails to fulfill its flight obligations. Prior to the Amendment, U.S. Bank required the Company to maintain cash collateral equal to approximately 100% of the Companys air traffic liability. In light of the Companys improved balance sheet as a result of the recently completed IPO and related recapitalization, the Amendment facilitates a reduction in the holdback held by U.S. Bank, provided that the Company continues to satisfy certain financial criteria. On September 9, 2011, U.S. Bank reduced its holdback, effectively bringing the Companys restricted cash balance to zero, which resulted in an equal increase in the Companys unrestricted cash balance.
The foregoing description does not purport to be complete and is qualified in its entirety by reference to the Amendment, a copy of which will be filed with the Companys next quarterly report on Form 10-Q.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.