Allegiant Air has closed a $450 million term loan that will fund the pre-payment of nearly $350 million in outstanding debt.
The term loan, under a new credit and guaranty agreement that closed on 5 February, has a five-year tenor and priced at either 450 basis points (bps) over Libor or 350bps over an alternative base rate, a securities filing shows. The debt is secured by assets of Allegiant, excluding aircraft, engines and the Sunseeker Resort.
Proceeds from the loan will be used to prepay debt, including the successful tender of the majority of Allegiant's 5.5% senior notes due in 2019.
The airline closed a tender offer for the 5.5% notes in January, with $346 million purchased, Allegiant says.
Allegiant issued the $300 million 5.5% notes in June 2014, and increased the facility by $150 million in 2016.
Barclays is the lead arranger, syndication agent and administrative agent of the term loan. The lender is also the dealer-manager and solicitation agent of the tender.
Source: Cirium Dashboard