LAS VEGAS, Sept. 30, 2020 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) (the "Company," "we," "us," or
"our") has agreed to sell $150.0
million in aggregate principal amount of its 8.5% Senior
Secured Notes due 2024 (the "Notes") at par to investors in a
private offering. The Notes are expected to be issued on
October 7, 2020, subject to customary
closing conditions. Each of the Company's subsidiaries will
guarantee the Notes, other than Sunseeker Resorts, Inc., 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 and certain other assets. The collateral
also secures the Company's outstanding loan under the Credit and
Guaranty Agreement, dated as of February 5,
2019, among the Company, as borrower, the subsidiaries of
the borrower party thereto, as guarantors, the lenders party
thereto, and Barclays Bank PLC, as administrative agent,
syndication agent and lead arranger (as amended, restated,
supplemented, modified, renewed, refunded, replaced or refinanced
from time to time) (the "Term Loan"), on a pari passu basis.
The Notes and the related guarantees will rank pari passu
with the Term Loan, which has an outstanding principal amount of
$543 million. Combining the Notes
with the balance on the Term Loan which bears a floating interest
rate, we will have approximately $693
million of debt secured by this collateral with a weighted
average interest rate of approximately 4.5% at the current time.
The Company will use the net proceeds from the sale of the Notes
for general corporate purposes.
Previously, the Company applied to the loan program under the
CARES Act for funding in the principal amount of up to $276 million through September 30, 2020. The Company has decided not
to pursue any loans from the U.S. Treasury.
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 premier leisure
experiences - from vacations to hometown family entertainment.
Since 1999, the airline 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
all-Airbus fleet 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.
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.
Forward-Looking Statements
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements contained in, or
incorporated by reference into, in this press release that are not
historical facts are forward-looking statements. Such
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include our statements regarding future expenses, revenues,
earnings, available seat miles growth, fuel consumption, airline
operations and capacity, the efficacy of cost saving measures,
future expenditures, our ability to access additional funds from
the U.S. Department of the Treasury or other sources, aircraft
financings, the timing of aircraft acquisitions and retirements,
expected capital expenditures, number of contracted aircraft to be
placed in service in the future, the development and financing of
our Sunseeker Resorts, Inc., as well as other information
concerning our possible or assumed future results of operations,
business strategies, fleet plan, financing plans, competitive
position, industry environment, potential growth opportunities,
future service to be provided and the effects of future regulation
and competition. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward-looking terminology such as the words "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "project" or similar
expressions.
Forward-looking statements involve risks, uncertainties and
assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact and duration of the COVID-19 pandemic and
public reactions to the contagion on airline travel in general, our
business in particular, and the economy, restrictions relating to
accepting government support under the Coronavirus Aid, Relief, and
Economic Security Act, an accident involving, or problems with, our
aircraft, public perception of our safety, our reliance on our
automated systems, our reliance on third parties to deliver
aircraft under contract to us on a timely basis, risk of breach of
security of personal data, volatility of fuel costs, labor issues
and costs, the ability to obtain regulatory approvals as needed,
the effect of economic conditions on leisure travel, debt covenants
and balances, the ability to finance aircraft under contract,
terrorist attacks, risks inherent to airlines, our competitive
environment, our reliance on third parties who provide facilities
or services to us, the possible loss of key personnel, economic and
other conditions in markets in which we operate, the ability to
successfully develop and finance a resort in Southwest Florida, governmental regulation,
increases in maintenance costs and cyclical and seasonal
fluctuations in our operating results.
Any forward-looking statements are based on information
available to us today and we undertake no obligation to update
publicly any forward-looking statements, whether as a result of
future events, new information or otherwise.
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SOURCE Allegiant Travel Company