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
Media Inquiries: firstname.lastname@example.org
Investor Inquiries: email@example.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