Sources familiar with the talks told the Wall Street Journal that the Trump administration is approaching agreement on a government-backed rescue for Spirit Airlines (NYSE:SAVE).
Under the proposal described to the Journal, the federal government would provide the low-cost carrier with a loan facility of up to $500 million. As part of the arrangement, the government would receive warrants that could permit it to take a substantial equity position in the airline, according to the report.
The discussions are being coordinated with participation from both the U.S. Department of Transportation and the Department of Commerce, the sources told the Journal. Officials in those agencies are engaged in the negotiating process, the report said.
Crucially, the conversations have not been concluded. The parties have not finalized the deal, and any potential agreement remains subject to revision, the report noted.
This account reflects the details reported to date: a potential loan up to $500 million, the issuance of warrants to the government that could lead to significant ownership, and involvement by the Transportation and Commerce Departments. Each element is described as part of ongoing negotiations that could yet change before becoming definitive.
Context summary
The reported framework links a sizable federal loan commitment to equity-linked instruments for the government, with two cabinet-level agencies participating in the talks. However, the arrangement remains provisional while negotiations continue.
Next steps
- Negotiations will continue between the administration and agency representatives until a final agreement is reached, if one is reached at all.
- The terms currently described are not final and could be altered in subsequent discussions.