Allegiant Travel prices $650 million debt offering at 7.125% interest

Allegiant Travel Company (NASDAQ: ALGT) agreed to sell $650 million in aggregate principal amount of 7.125% Senior Secured Notes due 2031 at an offering price of 99.479% of their principal amount in a private offering. The company increased the offering size by $150 million from the previously announced $500 million.

The notes are expected to be issued on June 24, 2026, subject to customary closing conditions. Each of Allegiant's subsidiaries, except Dustland, LLC and certain other subsidiaries, will guarantee the notes.

The notes and guarantees will be secured by security interests in substantially all property and assets of the company and guarantors, excluding aircraft, aircraft engines, real property and certain other assets. Some collateral currently secures the company's existing $403 million 7.25% Senior Secured Notes due 2027 and a $150 million undrawn revolving credit facility.

Allegiant will use net proceeds to refinance in full the existing notes and related costs, with the balance for general corporate purposes. The company operates through Allegiant Air and Sun Country Airlines, serving approximately 22 million annual customers across scheduled passenger, charter and cargo operations.

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

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