Allegiant Travel Co. Upsizes Senior Secured Notes Offering

By Tamara Parker • Wednesday, June 10 16:03 • Permanent Link

Allegiant Travel Co. said it has upsized its senior secured notes offering to $650 million from the $500 million it had previously announced, an increase of $150 million.

The company priced the 7.125% notes due 2031 at 99.479% of principal, and expects to issue them on June 24, 2026.

Allegiant plans to use the proceeds to refinance its existing $403 million 7.25% senior secured notes due 2027, along with related interest, costs, fees, expenses and other amounts. Any remaining proceeds will go to general corporate purposes.

The new notes will be guaranteed by subsidiaries other than Dustland LLC and certain other insignificant subsidiaries. They will be secured by substantially all property and assets of Allegiant and the guarantors, excluding aircraft, aircraft engines, real estate and certain other assets.

Some of that collateral also secures Allegiant’s existing $403 million notes and a currently undrawn $150 million revolving credit facility. As a result of these announcements, the company's shares have moved -7.23% on the market, and are now trading at a price of $80.42. Check out the company's full 8-K submission here.

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