Allegiant Travel closes $650M senior secured notes offering

Allegiant Travel Company (NASDAQ: ALGT) has closed a private offering of $650.0 million in aggregate principal amount of 7.125% Senior Secured Notes due 2031, according to a company statement.

The notes are guaranteed by substantially all of the company's subsidiaries, with the exception of Dustland, LLC and certain other minor subsidiaries. The notes and related guarantees are secured by interests in substantially all company property and assets, excluding aircraft, aircraft engines, real property and certain other assets. The same collateral also secures the company's currently undrawn $150.0 million revolving credit facility dated August 17, 2022.

Allegiant used a portion of the proceeds to purchase $377,534,000 in aggregate principal amount of its existing 7.25% Senior Secured Notes due 2027 through a previously announced tender offer. Those purchased notes have been canceled. A remaining $25,465,000 in aggregate principal of the 2027 notes is still outstanding, and the company expects to redeem that amount in the third quarter of 2026. The remaining net proceeds will be used for general corporate purposes.

The notes were sold only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S of the Securities Act of 1933, and have not been registered under that act.

You May Also Be Interested In

• Walker & Dunlop arranges $556M refi for student housing portfolio
• Allegiant Adds Free Drinks, Introduces New Class of Premium Seating
• Marti Technologies raises fiscal 2026 revenue outlook to $85M