Crédit Agricole CIB Acted as Sole Arranger and Bookrunner for Allegiant $100MM Revolving Credit Facility

Rhea-AI Summary

Crédit Agricole CIB has successfully closed a $100 million Senior Secured Revolving Credit Facility with Allegiant Travel Company (NASDAQ: ALGT), enhancing the airline's liquidity and support for its fleet investments. This financing marks an extension of their relationship established in 2015. The facility's structure includes a new requirement for Allegiant to secure a portion of its borrowing base with new technology assets as it takes delivery of Boeing 737 MAX aircraft and LEAP 1B engines over the next three years. This move aligns with Allegiant's ongoing ESG initiatives, emphasizing a commitment to reducing emissions in its operations.

Positive

• Closing of a $100 million Senior Secured Revolving Credit Facility enhances liquidity for Allegiant.
• New collateral requirement aligns financing with Allegiant's ESG initiatives and fleet upgrades.
• The partnership with Crédit Agricole CIB continues to strengthen, supporting Allegiant's growth.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Crédit Agricole CIB has closed a new $100MM 3-year Senior Secured Revolving Credit Facility with Allegiant Travel Company, acting as Sole Arranger and Bookrunner.

Allegiant is a longstanding client of the Bank, with this Senior Secured Revolving Credit Facility being the foundation of its relationship with the Company since 2015. With this latest refinancing, the transaction will continue to further enhance Allegiant’s liquidity position and will support the Company’s order book and introduction of new technology assets.

Following Allegiant’s recent release of its inaugural ESG report in December 2022, this Senior Secured Revolving Credit Facility will align with the Company’s ongoing ESG initiatives. For the first time, the transaction will include a requirement for Allegiant to gradually secure a portion of the Borrowing Base exclusively with new-technology assets over the term of the facility as it takes delivery of its new MAX 7/8 aircraft and LEAP 1B engines over the next three years.

“Credit Agricole CIB has been an important partner in supporting our fleet and financing initiatives since 2015. We are pleased to have closed this new facility with the bank as we prepare to begin taking deliveries from our Boeing orderbook later this year,” says Robert Neal, Senior Vice President and Chief Financial Officer at Allegiant. “The new collateral requirement in this financing highlights our commitment to reducing emissions through introduction of new technology equipment.”

“We appreciate the partnership with Allegiant and are delighted to continue our support of the Company’s fleet investments and new-technology initiatives with this new facility,” says Thomas Jean, Managing Director, Senior Banker at Crédit Agricole CIB,

Allegiant Travel Company (“Allegiant”) is listed on the NASDAQ (“ALGT”) and is a low-cost US airline headquartered in Las Vegas NV, focused on domestic leisure travel and services to residents of under-served cities in the US. The Company currently operates a fleet of 124 Airbus A320ceo family aircraft and recently announced the order of up to 100 Boeing 737 MAX aircraft.

Allegiant Travel Company

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 serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF

About Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB)

Crédit Agricole CIB is the corporate and investment banking arm of Credit Agricole Group, the 10th largest banking group worldwide in terms of balance sheet size (The Banker, July 2022). More than 8,900 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa support the Bank's clients, meeting their financial needs throughout the world. Crédit Agricole CIB offers its large corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in the area of climate finance and is currently a market leader in this segment with a complete offer for all its clients.

For more information, please visit www.ca-cib.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20230328005788/en/

For further information, please contact:

Jenna Lee - Head of Communications for the Americas, Crédit Agricole CIB

Crédit Agricole CIB Americas

@ jenna.lee@ca-cib.com

Tel: + 1 212 2617328

Source: Crédit Agricole CIB

FAQ

What is the new credit facility amount for Allegiant Travel Company?

The new credit facility amount is $100 million.

What is the duration of Allegiant's Senior Secured Revolving Credit Facility?

The facility has a duration of 3 years.

How does the new credit facility impact Allegiant's liquidity?

The credit facility enhances Allegiant's liquidity position, supporting its order book and fleet upgrades.

What are the new requirements associated with Allegiant's credit facility?

The facility requires Allegiant to secure part of its borrowing base with new technology assets.

When will Allegiant begin taking deliveries of new Boeing aircraft?

Allegiant will begin taking deliveries of new Boeing 737 MAX aircraft later this year.