Loan & DebtJun 29, 2026, 06:07 AM
Allegiant Travel Issues $650M Senior Secured Notes Due 2031
AI Summary
Allegiant Travel Company issued $650.0 million in 7.125% Senior Secured Notes due 2031. A significant portion of the proceeds, $377.5 million, was used to repurchase existing 7.25% Senior Secured Notes due 2027, with the remaining $25.465 million of the 2027 notes expected to be redeemed in Q3 2026. The new notes are secured by company assets and the remaining proceeds will be used for general corporate purposes. Additionally, the company amended its Revolving Credit and Guaranty Agreement to include Sun Country Airlines Holdings, LLC and its subsidiaries as guarantors.
Key Highlights
- Issued $650.0 million in 7.125% Senior Secured Notes due 2031.
- Notes bear interest at 7.125% per annum, payable semi-annually, maturing July 1, 2031.
- Used $377.5 million of proceeds to repurchase 7.25% Senior Secured Notes due 2027.
- $25.465 million of 7.25% Senior Secured Notes due 2027 remain outstanding, expected to be redeemed in Q3 2026.
- Balance of net proceeds will be used for general corporate purposes.
- Notes are secured by first priority security interests in substantially all company assets, excluding aircraft and real property.
- Amended Revolving Credit and Guaranty Agreement, adding Sun Country Airlines Holdings, LLC and its subsidiaries as guarantors.
Price Impact
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