JetBlue Announces Deal to Buy Spirit Airlines

JetBlue has announced a deal to purchase Spirit Airlines. The announcement comes a day after Spirit pulled out of a deal to merge with Frontier. The deal announced today would pay Spirit shareholders $33.50 per share in cash including a prepayment of $2.50 per share in cash payable upon Spirit stockholders’ approval of the transaction before the deal closes. JetBlue will also pay Spirit shareholders an additional 10 cents per month for any delay in closing after December of this year which could raise the price of each share to $34.15. If regulators block the deal JetBlue will pay Spirit $70 million and its shareholders will get an additional $400 million.