Strategy & Potential Buyers?
$Spirit Airlines (SAVE.US)$ still has $1 billion of cash, a 200+ plane fleet, a strong network infrastructure, and money owed to them from the Pratt Whitney engine problems. Spirit’s market cap is below $200 million in comparison to the $3.8 billion $JetBlue Airways (JBLU.US)$ was willing to pay for them as recently as 03/04/2024 when they dropped their appaeal and paid SAVE and additional $69 million break-up fee. $Frontier Group (ULCC.US)$ was willingly to pay $3+ billion in stock and cash with a $250 million break-up fee until their merger agreement was terminated in June 2022. Interestingly enough, Spirit’s debt and liquidity right now isn’t significantly different than it was when JetBlue & Frontier were in a bidding war for them. With interest rates dropping and a new administration that won’t oppose mergers likely to take office, I wouldn’t be surprised to hear a merger announcement before the end of the year.
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Writer, Producer, Professor, Investor, and Protector of Animals—especially cats 🐈⬛
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RoNo : That’s a lot of debt to take on . I think we see a dilution first. Bondholders get equity before a merger deal. I’ll take this peak off this squeeze and close out most of my position.
Good luck, we gutted it out all summer snd weren’t wrong!
Justin Brewer OP RoNo : 🫡
Justin Brewer OP RoNo : We’ve got liftoff… fingers crossed
Spirit Airlines stock soars 37% because a merger with Frontier might be back on
RoNo : Indeed. Cancelled all my meetings today just to watch the chart
Justin Brewer OP RoNo : Love it! 🫡
不要骗我没文化 RoNo : 我也一样