Spirit Airlines Confirms Receipt of Unsolicited Proposal from JetBlue Airways

Rhea-AI Summary

Spirit Airlines (NYSE:SAVE) has received an unsolicited cash proposal from JetBlue Airways (Nasdaq:JBLU) to acquire all outstanding shares at $33.00 per share. The Spirit Board will evaluate this proposal alongside its existing merger agreement with Frontier Group Holdings (NASDAQ:ULCC), which offers Spirit shareholders 1.9126 shares of Frontier and $2.13 in cash per share. The Board is committed to acting in the best interests of Spirit and its shareholders, and no action is required from shareholders at this time.

Positive

• JetBlue's proposal values Spirit shares at $33.00 each.
• The Spirit Board is actively evaluating offers to maximize shareholder value.

Negative

• Spirit is currently under a merger agreement with Frontier, which may complicate negotiations.
• Shareholders are required to wait for the final decision on the proposals.

MIRAMAR, Fla., April 5, 2022 /PRNewswire/ -- Spirit Airlines, Inc. ("Spirit" or the "Company") (NYSE:SAVE) today announced that it has received an unsolicited proposal from JetBlue Airways ("JetBlue") (Nasdaq: JBLU) to acquire all of the outstanding shares of Spirit's common stock in an all-cash transaction for $33.00 per share.

Consistent with its fiduciary duties, the Spirit Board of Directors will work with its financial and legal advisors to evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders. The Board will conduct this evaluation in accordance with the terms of the Company's merger agreement with Frontier and respond in due course. Spirit shareholders do not need to take any action at this time.

As announced on February 7, 2022, Spirit entered into a merger agreement with Frontier Group Holdings, Inc. ("Frontier") (NASDAQ: ULCC), parent company of Frontier Airlines, Inc., under which Spirit and Frontier would combine in a stock and cash transaction. Under the terms of the merger agreement, Spirit equity holders would receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. The transaction is subject to customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders.

Barclays and Morgan Stanley & Co. LLC are serving as financial advisors to Spirit and Debevoise & Plimpton LLP is serving as legal advisor.

About Spirit Airlines

Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows our Guests to pay only for the options they choose — like bags, seat assignments and refreshments — something we call Á La Smarte. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We serve destinations throughout the U.S., Latin America and the Caribbean, and are dedicated to giving back and improving those communities. Come save with us at spirit.com.

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SOURCE Spirit Airlines, Inc.

FAQ

What is JetBlue's acquisition proposal for Spirit Airlines?

JetBlue Airways has proposed to acquire Spirit Airlines for $33.00 per share in cash.

How will Spirit Airlines respond to JetBlue's offer?

The Spirit Board is reviewing JetBlue's proposal while also considering its existing merger agreement with Frontier.

What are the terms of Spirit's merger agreement with Frontier?

Under the merger agreement with Frontier, Spirit shareholders would receive 1.9126 shares of Frontier plus $2.13 in cash for each Spirit share.

What is the market reaction to JetBlue's proposal for Spirit Airlines?

Market reactions may vary based on the evaluation of the proposal and the existing merger agreement with Frontier.