Allegiant Travel Offers $500M Secured Notes Due 2031 to Refinance Existing Debt
ALGT•Allegiant Travel launched a private offering of $500 million senior secured notes due 2031, guaranteed by its subsidiaries and secured by substantially all assets excluding aircraft, engines, and real property. Net proceeds will fully repay $403 million of 7.25% secured notes maturing in 2027 and fund general corporate purposes.
1. Offering of Senior Secured Notes
Allegiant Travel Company commenced a private offering of $500 million aggregate principal amount of senior secured notes due 2031 to qualified institutional buyers and certain non-U.S. investors. The offering is structured under Rule 144A and Regulation S.
2. Collateral and Guarantee Structure
All of Allegiant’s subsidiaries, excluding Dustland, LLC, will guarantee the notes. The notes are secured by security interests in substantially all assets of the company and guarantors, excluding aircraft, engines, real property, and certain other assets.
3. Use of Proceeds and Maturity Extension
Net proceeds will fully refinance the company’s existing $403 million of 7.25% senior secured notes due in 2027, covering all related interest and fees. Any remaining funds will be allocated for general corporate purposes, extending the debt maturity profile to 2031.
