MW Frontier makes new offer to combine with Spirit Airlines via new debt, stock offering
Frontier Group Holdings Inc.'s stock rose 1.9% early Wednesday, after the low-cost carrier said it has made a compelling new offer to combine with Spirit Airlines Inc. by issuing new debt and common stock.
The proposed deal "would provide meaningful value to Spirit financial stakeholders, in excess of Spirit's standalone restructuring plan," Frontier $(ULCC)$ said in a statement. Spirit (SAVEQ) is still working its way through bankruptcy court after filing for Chapter 11 in November.
"This proposal reflects a compelling opportunity that will result in more value than Spirit's standalone plan by creating a stronger low fare airline with the long-term viability to compete more effectively and enter new markets at scale," said Bill Franke, chair of Frontier's board and a managing partner of Indigo Partners LLC.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 29, 2025 07:17 ET (12:17 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.