If regulators don't approve the planned combination of the two discount carriers for antitrust reasons, Frontier Airlines will pay a $250 million reverse break up fee to Spirit Airlines.
The combination of a higher reverse termination fee and a much greater likelihood to close in a Frontier merger provides substantially more regulatory protection for Spirit stockholders.
The $2.9 billion cash-and-stock deal that Spirit and Frontier announced in February was trumped by an offer of $33 a share from New York-based jetBlue.
JetBlue made a tender offer of $30 a share and urged the shareholders of Spirit to reject the deal.
Regulators wouldn't likely approve a deal with the airline. If regulators don't approve the acquisition, the airline will pay a $200 million reverse break-up fee.
Institutional Shareholder Services advised Spirit shareholders to vote against the Frontier deal due to the lack of a reverse terminated fee.
The shareholder meeting will take place on June 10.