Spirit Airlines Shares Are Trading Higher After The Company Extended Its Debt Refinancing Deadline, What Traders And Investors Need To Know

Benzinga

Spirit Airlines announced that on October 11, it modified its card processing agreement to extend the deadline for its 2025 notes from October 21 to December 23 and the early maturity date from December 31 to March 3.

Transcript

00:00All right staying in the airline sector here we did have some news on spirit airlines ticker save

00:08Someone came in and tried to save save here spirit. Airline shares are trading higher at the company extended is debt

00:15refinancing deadline, so

00:18You know spirit was up against the clock for this debt refinancing got an extension on it

00:22The stock actually traded up a to $2 and 40 cents this or what? Was that?

00:57stories and strong stocks as opposed to trying to buy bad stocks and bad

01:04stories and that's what Save and Boeing, that's all part of the same thing. I mean

01:09you just think about how strong this market has been. The turnaround story,

01:12everybody likes a good turnaround story, everybody wants a good turnaround story

01:16but they're the toughest things to trade, they're the toughest things to time.

01:20Sometimes the stories turn around, sometimes they never turn around but you

01:23just see the stock and it's just a disaster and they're teetering with

01:26bankruptcy and yeah they're gonna get some help here now, maybe they're not

01:29gonna go bankrupt but maybe they are still gonna go bankrupt. There's a lot

01:33of things to worry about here. I let it be somebody else's worry. I don't need

01:37to worry about this. I have enough worries, I don't need to worry about SAVE.

01:41Okay, a couple things here and we talked about this last week or whenever when

01:48it had the big dip. It's like what are you doing at $1.50 on something?

01:52Are you shorting it? Oh yeah, I got a $1.50 on the bone here, this company is worthless,

01:58they're going under. No, no, I mean if anything and not for a long-term trade

02:03but you look at it you know and say well you know if I buy X amount of shares

02:07here at $1.50 and it goes to zero then I lose, then I lose my money, right?

02:13If a lot of people are probably just in for that for the trade, you know even

02:18some hedge funds or you know big traders, you know look at the volume this thing

02:22trades, you know it trades monster volume. They're like hey let's get long

02:25five million save and if it you know if it goes up to two bucks, who cares if

02:31they're going bankrupt? We'll unload it and I think that's you know different

02:34kind of traders. So man that big old pop to $2.50 here, wow! $2.51 to $0.50 off that.

02:42Huge percentage moves here. I'm just looking at this two bucks. If there's

02:46like hope for this company and things are gonna come through and they're gonna

02:51get refinanced and you know people are actually gonna, I mean their seats are so

02:55small. I don't know who builds their airplanes. Dennis, remember when we flew back from

02:59New York at one time on Spirit? I mean basically I don't have the widest front

03:04seat. That's why they sell the big front seat. Yeah, yeah. So let's see if we can

03:09establish you know a strong $2 bid. I mean too bad they didn't let this company

03:14get, I mean JetBlue we talked about that. I mean you know the merger I don't know

03:18obviously that's off the table. No one's gonna go back to that but yeah let's

03:22uh you know let's let's hold those games. I'd love to see it go back to $2.50 for

03:26shareholders but right now let's see if you can even hold a $2 bid. Right now

03:31it's a battle of the algos there. Better stories out there.

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