Allegiant Travel Commences $500M Debt Offering

BY Benzinga | CORPORATE | 08/10/22 01:33 PM EDT
  • Allegiant Travel Co (NASDAQ:ALGT) commenced an offering of $500 million of Senior Secured Notes due 2027 to investors in a private offering.
  • The company's subsidiaries will guarantee the Notes, other than Dustland, LLC, Sunseeker Resorts, Inc. and its subsidiaries, and certain other insignificant subsidiaries. 
  • The collateral that will secure the Notes currently secures the company's existing $150 million 8.500% Senior Secured Notes due 2024 and the company's Term Loan B.
  • Allegiant intends to use the net proceeds, together with cash on hand, to repay its Term Loan B, which has an outstanding principal amount of $533 million.
  • Price Action: ALGT shares are trading higher by 2.39% at $106.69 on the last check Wednesday.

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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