Spirit Airlines goes public … with dirty laundry

Spirit AirlinesRemember when Spirit Airlines talked about going public? The company felt the need to disclose customer service as a critical risk in its initial public offering documents. One would expect nothing less from the carrier that used flight attendant-turned nutjob-turned spokesman Steven Slater to sell seats. Well, Spirit hopped into the arena of public finance, raising $187.2 million in its initial public offering last week.

What’s interesting is that the folks with the dough – Indigo Partners and Oaktree Capital Management – weren’t shy about looking for the exits. In addition to revealing the problems with “[n]egative publicity regarding our customer service,” Spirit noted in its filing:

“After the offering, our private equity sponsors may elect to reduce their ownership in our company or reduce their involvement on our board of directors, which could reduce or eliminate the benefits we have historically achieved through our relationships with them.”

Time to brace?