ALLEGIANT TRAVEL COMPANY COMPLETES SENIOR SECURED DEBT REFINANCING

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) has successfully closed a private offering of $550 million in 7.250% Senior Secured Notes due 2027. This move allows the company to refinance existing debt while ensuring robust liquidity. The proceeds will be used to repay a $533 million Term Loan B, cover transaction costs, and support general corporate purposes. Additionally, Allegiant has secured a $75 million revolving credit facility, bringing total available liquidity to over $1.4 billion. This financial strategy aims to strengthen Allegiant's growth trajectory amidst the current interest rate climate.

Positive

• Successfully closed a $550 million offering of Senior Secured Notes.
• Used proceeds to refinance $533 million Term Loan B, improving financial standing.
• Secured a $75 million revolving credit facility, enhancing liquidity position.
• Total available liquidity increased to over $1.4 billion, supporting growth initiatives.

Negative

• None.

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"). 

Each 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.

The 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.

"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."

The 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.

The new revolving credit facility from Barclays, along with existing revolving credit facilities from MUFG Bank and Credit Agricole, will give Allegiant over $1.4 billion in available liquidity.  

The Notes and the related guarantees have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. The Notes and the related guarantees were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act ("Rule 144A") and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.

Allegiant – Together We Fly^™

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's fleet serves communities across the nation, with base airfares less than half the cost of the average domestic round-trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

No Offer or Solicitation

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, any securities in any jurisdiction in contravention of applicable law.

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SOURCE Allegiant Travel Company

FAQ

What is the amount raised by Allegiant Travel Company in the recent debt offering?

Allegiant Travel Company raised $550 million in its recent private offering of Senior Secured Notes.

What is the purpose of the funds from Allegiant's recent debt offering?

The funds from the offering will be used to repay the $533 million Term Loan B, cover transaction costs, and for general corporate purposes.

How much liquidity does Allegiant have after the new credit facility?

After securing the new revolving credit facility, Allegiant has over $1.4 billion in available liquidity.

What is the due date for Allegiant's newly issued Senior Secured Notes?

The newly issued Senior Secured Notes are due in 2027.