From the the Spirit Airlines [SAVE] March 29, 2020 8-K filing:
On March 29, 2020, the Board of Directors of Spirit Airlines, Inc. (the “Company”) declared a dividend of one preferred stock purchase right (a “Right”) for each outstanding share of common stock, par value $0.0001 per share (the “Common Stock”), of the Company. The dividend is payable on April 9, 2020 (the “Record Date”) to holders of record as of the close of business on that date. The description and terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the Company and Equiniti Trust Company, as Rights Agent (the “Rights Agent”).
The Board of Directors has adopted the Rights Agreement to reduce the likelihood that a potential acquirer would gain (or seek to influence or change) control of the Company by open market accumulation or other tactics without paying an appropriate premium for the Company’s shares. In general terms and subject to certain exceptions, it works by imposing a significant penalty upon any person or group (including a group of persons that are acting in concert with each other) that acquires 10% or more of the outstanding common stock of the Company without the approval of the Board of Directors.
Others Adopting Rights Protection Plans
Spirit Airlines [SAVE] isn't the only company adopting limited during this time of extreme economic and market dislocation. Read our post here to learn more about who is doing, why, and what the specifics of each plan are.