LAS VEGAS, August 18, 2022 /PRNewswire/ — Allegiant Travel Company (NASDAQ: ALGT ) today closed its private offering and issued $550.0 million in aggregate principal amount of its 7.250% senior secured notes due 2027 (the “Notes”).
Each of the Company’s subsidiaries guaranteed the notes, except for Dustland, LLC, Sunseeker Resorts, Inc. and its subsidiaries and certain other minor branches. The notes and related guarantees are secured by security interests in substantially all of the property and assets of the company and the guarantors of the notes, excluding aircraft, aircraft engines, real property and certain other assets. The collateral securing the notes also secures the existing notes of the company $150.0 million 8,500% senior secured notes due 2024 (the “Existing Notes”) and the company’s new Revolving Credit Facility (defined below) in a Step by step base. Combining the aggregate principal amount of the Notes with the aggregate principal amount of the Existing Notes, the Company has approximately 700 million dollars of the debt secured by such collateral.
The Company used the net proceeds from the sale of the Notes to repay the Company’s Term Loan B, which had an outstanding principal amount of 533 million dollarsand to pay transaction costs and expenses and will use the balance for general corporate purposes.
“This debt refinancing puts Allegiant in a strong position for the future as it gives us the liquidity profile to execute our growth strategy,” said the company’s President and CFO. Gregory C. Anderson. “The call feature in this transaction provides valuable flexibility as we navigate the current interest rate environment while providing a robust capital structure to support our business initiatives.”
The Company has also entered into a credit agreement that provides a secured revolving credit facility up to 75.0 million dollars (the “Revolving Credit Facility”). The Company’s obligations under the Revolving Credit Facility will be guaranteed by the same guarantors that guarantee the notes and will be secured by the same collateral that secures the notes. The Notes and the Revolving Credit Facility together provide 625 million dollars in liquidity secured by such collateral at a blended current rate of 6.4%, while it has not been withdrawn.
The new revolving credit facility from Barclays, together with the existing revolving credit facilities from MUFG Bank and Credit Agricole, will give Allegiant 1.4 billion dollars in available liquidity.
The notes and related warrants have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The notes and the related warrants were offered and sold only to persons deemed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act (“Rule 144A”) and to certain non-U.S. persons in transactions outside United States pursuant to Regulation S under the Securities Act.
faithful – We fly together™
Las Vegas(NASDAQ: ALGT)-based Allegiant is an integrated travel company with an airline at its heart, focused on connecting customers to the people, places and experiences that matter most. Since 1999, Allegiant Air has connected small- and mid-sized city travelers to world-class vacation destinations with all-inclusive nonstop flights and industry-low average fares. Today, Allegiant’s fleet serves communities across the country, with base fares less than half the cost of the average round-trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.
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This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities and will not constitute an offer to sell or the solicitation of an offer to buy, or a sale of any securities in any jurisdiction contrary to applicable law.
SOURCE Allegiant Travel Company