Allegiant Travel Company 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, with issuance expected on June 24, 2026.
The new debt will carry a 7.125% coupon and mature in 2031. Allegiant said it plans to use the proceeds to fully refinance its existing $403 million 7.25% senior secured notes due 2027, along with related interest, costs, fees, expenses and other amounts, with any remainder going to general corporate purposes.
The offering is also tied to a broader collateral package. The notes and related guarantees will be secured by substantially all of the company’s and guarantors’ property and assets, excluding aircraft, aircraft engines, real property and certain other assets. Some of that collateral already secures the company’s existing $403 million notes and a $150 million revolving credit facility that is currently undrawn.
Allegiant said its subsidiaries, other than Dustland LLC and certain other insignificant subsidiaries, will guarantee the notes. The company said the securities are being sold in a private offering to qualified institutional buyers and certain non-U.S. investors. The market has reacted to these announcements by moving the company's shares -3.25% to a price of $83.87. For more information, read the company's full 8-K submission here.
