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ALLEGIANT TRAVEL COMPANY COMPLETES SENIOR SECURED DEBT REFINANCING
LAS VEGAS, Aug. 18, 2022 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today closed its private offering and issued $550.0 million in aggregate
About this update from Allegiant Travel Company
[{"type":"text","content":"LAS VEGAS, Aug. 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\"). \n\n \n \n \n \n \n \n\n \nEach of the company's subsidiaries guaranteed the Notes, other than Dustland, LLC, Sunseeker Resorts, Inc. and its subsidiaries and certain other insignificant subsidiaries. The Notes and the related guarantees are secured by security interests in substantially all 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 that secures the Notes also secures the company's existing $150.0 million 8.500% Senior Secured Notes due 2024 (the \"Existing Notes\") and the company's new Revolving Credit Facility (defined below) on a pari passu basis. Combining the aggregate principal amount of the Notes with the aggregate principal amount of the Existing Notes, the company has approximately $700 million of debt secured by such collateral.\nThe 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, and to pay costs and expenses of the transaction and will use the balance for general corporate purposes.\n\"This debt refinancing puts Allegiant in a strong position for the future, as it gives us the liquidity profile to execute on 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 through the current interest rate environment while ensuring a robust capital structure to support our business initiatives.\"\nThe company also entered into a credit agreement that provides a senior secured revolving loan facility of up to $75.0 million (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 Revolving Credit Facility together provide $625 million in liquidity secured by such collateral at a current blended rate of 6.4% while undrawn.\nThe new revolving credit facility from Barclays, along with ...