ALLEGIANT TRAVEL COMPANY PRICES UPSIZED $550 MILLION OFFERING OF SENIOR SECURED NOTES
Allegiant Travel Company (NASDAQ: ALGT) announced the sale of $550 million in 7.250% Senior Secured Notes due 2027, increasing the offering by $50 million. The notes are set for issuance on August 17, 2022, and will be secured by various assets, excluding aircraft and real estate. Proceeds will be used to repay the Company's $533 million Term Loan B. The offering is limited to qualified institutional buyers and certain non-U.S. persons under Regulation S.
- Successful upsizing of the offering from $500 million to $550 million indicates strong investor interest.
- Securing $550 million in notes will reduce overall debt burden by repaying the $533 million Term Loan B.
- Issuing new notes increases overall leverage, which could heighten financial risk.
LAS VEGAS, Aug. 10, 2022 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) (the "Company," "we," "us," or "our") has agreed to sell
Each of the Company's subsidiaries will guarantee the Notes, other than Dustland, LLC, Sunseeker Resorts, Inc. and its subsidiaries and certain other insignificant subsidiaries. The Notes and the related guarantees will be secured by security interests in substantially all of 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 will secure the Notes currently secures the Company's existing
The Company will use the net proceeds from the sale of the Notes to repay the Company's Term Loan B, which has an outstanding principal amount of
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 are being 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.®
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/allegiant-travel-company-prices-upsized-550-million-offering-of-senior-secured-notes-301603913.html
SOURCE Allegiant Travel Company
FAQ
What is the amount of Senior Secured Notes Allegiant Travel Company is selling?
When will Allegiant's Senior Secured Notes be issued?
What will Allegiant do with the proceeds from the Senior Secured Notes?
What is the offering price of Allegiant's Senior Secured Notes?
Who can purchase Allegiant's Senior Secured Notes?
