Spirit Mergers and Acquisitions Presentation Deck
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A Merger with Frontier Optimally Positions Spirit
Shareholders For the Sector's Long-term Recovery
The Frontier transaction provides shareholder with a substantial value creation opportunity by capitalizing on synergies,
fully participating in the pandemic recovery, and realizing growth from new aircraft
48.5% of
Frontier + Spirit
Combination
Cash
Consideration
to Spirit (¹)
1
48.5% of
$3.85+ Billion
Synergy
Value (2)
Participation in
Industry Recovery
to Pre-Pandemic
Performance
+
Participation in
the Growth from
350 New Aircraft |
The significant potential upside to current share
price is further enhanced by a Frontier transaction
Illustrative Spirit Value per Share,
Pro Forma for Frontier Merger(3) (4)
$61
$50
2024E P/E 10x
$56
11x
Source: Capital IQ, Company Filings, Broker Reports, Synergies Estimates.
1. Cash consideration of $2.13 per share.
2. Represents Spirit shareholder's 48.5% share of illustrative market value of run-rate operating synergies of $500MM, calculated at 11x P/E ratio assuming an effective tax rate of
22.7%, less one-time costs to achieve of $400MM.
3. Market data as of May 20, 2022.
4. Illustrative value per share based on Spirit shareholder's 48.5% share of pro forma 2024E Spirit and Frontier net income of $826MM based on Wall Street estimates, divided by current
fully diluted shares outstanding, plus cash consideration of $2.13. Includes illustrative market value of run-rate operating synergies of $500MM, calculated at each P/E ratio assuming
an effective tax rate of 22.7%, less one-time costs to achieve of $400MM. Not intended as a prediction of future trading prices.
12x
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