Key Highlights

  • Allegiant Travel Co. (NASDAQ: ALGT) issued $650 million of 7.125% senior secured notes due July 1 2031.
  • Notes are secured by assets and also back a $150 million undrawn revolving credit facility.
  • Early‑redemption provisions allow for flexible redemption options.

Allegiant Travel Co. (NASDAQ: ALGT) completed a $650 million senior secured note issuance on June 24 2026. The 7.125% notes mature on July 1 2031 and will pay interest semi‑annually on January 1 and July 1, beginning January 1 2027.

Issue Details

The notes carry a fixed coupon of 7.125% per annum and rank as senior secured obligations, equal in rank to any existing senior debt. Proceeds will be allocated to general corporate purposes, expanding the firm’s financing flexibility.

Collateral Structure

Security for the notes includes first‑priority interests in nearly all of Allegiant’s property and assets, except aircraft, engines, and real estate. This collateral also backs the company’s currently undrawn $150 million revolving credit facility, reinforcing the overall debt structure.

Early Redemption Terms

Before July 1 2028, Allegiant may redeem a portion of the notes each year at a redemption price of 103% of the principal, plus accrued interest. Additionally, the issuer may retire a larger portion of the notes using net cash from equity offerings, provided at least 60% of the original principal remains outstanding. After July 1 2028, the notes can be called at a price equal to 100% of principal, with standard accrued interest.

Change‑of‑Control and Asset Sale Provisions

If a change in control occurs, the company must offer to repurchase the notes at a purchase price of 101% of principal, plus accrued interest. Likewise, certain asset sales trigger a mandatory repurchase at a price equal to 100% of principal, with accrued interest.

Liquidity Covenant and Penalty Interest

Allegiant is obligated to maintain a minimum aggregate liquidity of $300 million at each quarter’s end. Failure to meet this threshold, as evidenced by a compliance certificate showing liquidity below $300 million, will impose an additional 2.0% interest on all outstanding notes until compliance is restored.

Default and Acceleration Rights

The indenture permits the trustee or holders of at least 25% of the notes to declare the entire principal and any accrued interest due immediately upon a non‑bankruptcy default. In default scenarios, holders receive a make‑whole premium calculated per the indenture’s formula.

Documentation

The full indenture and related note documents are filed as Exhibits 4.1 and 4.2, while the press release announcing the issuance is attached as Exhibit 99.2.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.