Las Vegas-based Allegiant Air has borrowed $40 million from CIT, in a loan secured by its six Boeing 757s and the aircraft's Rolls-Royce RB211 engines.
The notes payable under the 48-month loan bear interest at a floating rate based on the London Interbank Offered Rate (LIBOR). Allegiant will use the proceeds for general corporate purposes, says the carrier.
"We are very pleased to be able to access the market at competitive rates," says Allegiant president and chief operating officer Andrew Levy. "We continue to demonstrate that there is strong financing demand for used aircraft which is the life blood of our company. This transaction is also evidence of our commitment to the 757 and the positive contributions that it is making to the Allegiant fleet."
The notes will be payable in monthly installments through May 2018, when a balloon payment is due, says the carrier in an investors update.