Spirit Airlines Inc (NYSE: SAVE) shares are trading lower Monday after the company announced an amended merger agreement with Frontier Group Holdings Inc (NASDAQ: ULCC) which features a lower cash consideration, but more stock, than the acquisition offer from JetBlue Airways Corp (NASDAQ: JBLU).
Under the terms of the amended agreement, Frontier will increase the per-share cash consideration payable to Spirit shareholders to $4.13 in cash, in addition to the per-share stock consideration of 1.9126 shares of Frontier that the company previously agreed to pay Spirit shareholders.
Frontier also said it will increase its reverse termination fee to $350 million in the unlikely event the business combination does not go through for antitrust reasons. Frontier will also add one more director to the combined company than the companies previously agreed on.
Based on the improved terms offered by Frontier, the Spirit Airlines board reiterated its unanimous recommendation that Spirit shareholders vote for the merger agreement with Frontier.
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SAVE Price Action: Spirit Airlines has a 52-week high of $33.25 and a 52-week low of $15.92.
The stock was down 6.65% at $22.89 at press time, according to data from Benzinga Pro.
Photo: courtesy of Spirit Airlines.
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