Allegiant Travel Company (NASDAQ: ALGT) commenced a private offering of $500 million in senior secured notes due 2031, according to a company statement.

The Las Vegas-based travel company said its subsidiaries, excluding Dustland, LLC and certain other subsidiaries, will guarantee the notes. The notes will be secured by substantially all property and assets of the company and guarantors, except aircraft, aircraft engines, real property and certain other assets.

Allegiant plans to use proceeds from the note sale to refinance its existing $403 million 7.25% senior secured notes due 2027, including all related interest, costs, fees and expenses. The company will allocate remaining funds for general corporate purposes.

Some collateral currently secures the existing notes and a $150 million revolving credit facility that remains undrawn. Property and assets of Sun Country Airlines Holdings, Inc. and its subsidiaries will secure the new notes separately.

The notes are being offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S. The securities have not been registered under the Securities Act of 1933.

Allegiant operates as an integrated travel company through Allegiant Air and Sun Country Airlines, serving approximately 22 million annual customers. The airlines operate more than 650 routes serving nearly 175 cities throughout the United States and select international destinations.