Loan & DebtMay 7, 2026, 03:38 PM
Alaska Air Group Prices $500M Senior Notes, Plans $500M Term Loan
AI Summary
Alaska Air Group, Inc. announced the pricing of a private offering of $500 million aggregate principal amount of 6.5% senior notes due 2031 by its subsidiary, Alaska Airlines, Inc. These notes will be fully and unconditionally guaranteed by the Company. Additionally, an indirect wholly owned subsidiary expects to incur a new incremental tranche of $500 million senior secured term loans, secured by collateral related to Alaska's customer loyalty program. The proceeds from both financings are intended for general corporate purposes, with closing expected around May 12, 2026.
Key Highlights
- Alaska Air Group priced a private offering of $500 million 6.5% senior notes due 2031.
- The notes were issued by Alaska Airlines, Inc. and are fully guaranteed by Alaska Air Group.
- An indirect wholly owned subsidiary expects to incur a new $500 million incremental senior secured term loan.
- The term loan will be secured by collateral associated with Alaska's Atmos Rewards customer loyalty program.
- The incremental term loan will rank pari passu with the existing term loan facility and loyalty notes.
- Proceeds from both the notes offering and term loan will be used for general corporate purposes.
- The financings are expected to close on or about May 12, 2026.