Spirit paying a dividend on April 9?


MIRAMAR, Fla., March 30, 2020 (GLOBE NEWSWIRE) -- Spirit Airlines, Inc. (NYSE: SAVE) announced today that its Board of Directors has approved the adoption of a limited duration stockholder rights agreement (the “Rights Agreement”) and declared a dividend distribution of one right (“Right”) for each outstanding share of common stock outstanding as of the record date. The record date for such dividend distribution is April 9, 2020. The Rights Agreement expires, without any further action being required to be taken by the Spirit Board of Directors, on March 29, 2021.

That's the poison pill - a dividend paid out as rights - not money

I added today.

F it!!!

How would that work? Say you have 500 shares. We have 500 rights for doing what?

Here, I have learned of a new internet application called a search engine.....

https://www.google.com/search?client...ile-gws-wiz-hp

Search the website for WHACKMASTER. He has 1 or 2 billion posts on the subject.

I guarantee that SWA is spending considerable brain power at the management level trying to decide who to attack or buy once they get their feet back under themselves. They’ll likely not have another chance at stock prices this cheap once the market turns.

hahahahahahahhaahahahah

Could we be so lucky. I suspect they are circling their wagons trying to figure out how to ride this out, thinking at the rate we are going we won’t be competition anyway.

Circling the wagons is their immediate concern. But this is an unexpected opportunity with the Legacies and friends being forced to downsize pretty radically. SWA and probably some investment groups are seeing the possibility to gain market share, gates capacity etc. when this is over. Plans are at least being laid to that end.

can’t wait to be a Junior F/O commuting to OAK.

Finally, your flight school dreams come true.

Still wondering what it means to get "Airtranned". I feel like it's a long standing joke on the forum, but hard to tell the details of what went down

Cliffs Notes

when SWA bought AirTran majority of AirTran CAs got downgraded and everyone else become Junior SWA F/Os.........

but with todays law captains can’t downgrade to FO’s with a merger. There are certain “fences” in place that prohibits the abuse we used to see in years past.

Thanks for filling me in!

ehhh, what if SWA “Acquires” us and we don't “merge” per sé.

airtran wasn't a merger per se

Does their scope clause allow for a SWA owned airline to perform revenue operations for SWA with pilots that aren’t..... (I think you see where I’m going)....

no it doesn’t but that’s not what he asked

Okay, we’re bought and not merged, and then..........................................

Please fill in the dots.

he’s debating the semantics of an acquisition vs a merger and how that would affect integration not whether or not the seniority lists would be merged. More how lists would be merged based upon what the transaction of the companies is called (acquisition or merger)

Thats how I read it anyway.

AirTran Acquisition ? Southwest Airlines

https://www.reuters.com/article/uk-a...73Q01M20110427

Merger/Acquisition defined

https://www.investopedia.com/terms/m/mergersandacquisitions.asp

https://pitchbook.com/news/articles/...d-acquisitions

Not liquidated, but liquified.

Thinking about purchasing some more Spirit stock today since it’s down to about $12.50. Think it’s a smart move?

Hard to say based on request denial...

I think we will see sub $10 again

Thanks for the laugh. Was feeling a bit forlorn today.

Why airline stock? So many better buys out there right now, and ones that pay dividends on top of that.

That ‘MIGHT’ be the case in an arbitrated settlement, but SWA/AirTran was not arbitrated. The conditions of SLI were settled during negotiation, and EACH union membership voted it in by approximately 85% yes to 15% no.

I suspect an industry lesson-learned through this would be to just take it to arbitration.

So many other things to buy that aren’t as risky. Airline stocks are in no man’s land right now.

You should be buying nothing right now. The market is moving up yet unemployment is reaching record highs. Just wait for the other shoe to drop.

The market may go down again and retest the lows. But if you have a 20 year horizon or longer now is a damn good time to buy. Nobody knows the bottom.
or the top for that matter. There are some extremely well run companies that will
be around 75 years from now on deep discount. (Think Wal mart, coke, McDonald’s ) The exact entry point isn’t as important as just getting In. I for one think spirit is a solid buy at this price. I wound generally stick with boring safe blue chip stocks right now . But if you wanna take a swing for a few thousand bucks .. I feel spirit is a solid risk/reward

come on SAVE! Patience was all it took...Well that and a worldwide pandemic..at 7x probably going to pull the chute. Getting close. Keep it up guys!

No kidding. I've doubled my money based on my average cost basis for SAVE I bought approximately 10-11 months ago. I just need it to hold on for another couple of months so I can sell and pay tax based on long term capital gains instead of ordinary income. Rooting for you guys!

Still 1.8 million? Ouch. Guess all the "my plane was full" in the world doesn't fix selling 50 dollar one way transcons just to keep a few customers away from southwest.

Well, non-ticket revenue was only down 4.5%.... We need butts in those seats to pay the ancillary portion of our revenue stream. I guess it could be worse.

Let’s see, $1.9 BILLION in liquidity divided by $1.8 MILLION per day means NK can only keep going like this for about 1055 days...

Well, that’s only if the third PSP package doesn’t come through. If it does, that would take it out to about three and a third YEARS.

As long as the legacy carriers keep begging for cash and Spirit gets a cut to not furlough employees they didn’t even intend to furlough, it’s a good deal.

Here Spirit is announcing hiring again, while receiving $185m in payroll support for this current round. That’s enough to cover cash burn for the next quarter.

The cash burn numbers do not include the PSP money. So they probably aren’t burning money if you include the govt. assistance.