Spirit Mergers and Acquisitions Presentation Deck
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10%
11%
The Frontier Merger Offers Compelling Value Now,
Plus the Economic Upside of Continued Ownership
Precedent Average Stock-for-Stock Merger Premiums (%) (¹)
Frontier 30-Day VWAP Merger Premium at Announcement(2): 26%
18%
A premium at the high end of average precedent transactions,
paired with ongoing participation in the expected growth of the combined airline
12%
16%
Frontier Merger Premium at Announcement(3): 19%
15%
5%
12%
13% 13% 13%
11%
17%
8%
6%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Economic Upside from Continued Ownership
Beyond a relatively high upfront premium compared to
precedent stock mergers, Frontier merger offers
additional value through continued ownership of the
combined con bany:
✓ Airline share prices have 68% upside to pre-pandemic
levels; as the sector recovery takes hold, only a
stock-for-stock transaction allows shareholders to
participate in that recovery
A merger with Frontier would create a stronger, more
effective, national ultra-low fare competitor to the
Big 4 - which offers additional value creation
potential beyond the sector recovery - while
improving operational matters such as recoverability
during irregular operations
* An all-cash offer does not include any incremental
value from continuing ownership
Source: FactSet.
1.
Data reflects average premiums for all-stock U.S. M&A transactions announced between 2007 and 2021 with transaction value over $500mm and 35-65% pro forma target ownership.
Premium based on the 30 trading-day volume-weighted average prices of Frontier and Spirit as of 2/4/2022.
2.
3.
Represents premium to Spirit's closing share price on 2/4/2022.
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