Allegiant Air has term sheets in place for bank debt to finance its first seven new Airbus A320 deliveries.

The Las Vegas-based carrier will finance the aircraft with direct loans from up to four lenders, sources say. The loans are expected to close shortly before the first A320 arrives in May.

They decline to comment on the lenders.

Allegiant has relationships with a number of banks, including the Development Bank of Japan, Nord/LB, SMBC, Tokyo Star Bank and Wells Fargo.

The airline is scheduled to take 10 of the 12 new A320s this year, following its first ever order for new aircraft in July 2016. The remaining two are due in 2018.

Allegiant considered a secured capital markets transaction for the aircraft but found the terms in the bank market "very compelling and competitive", said Allegiant chief operating officer Jude Bricker in March.

The first two A320s have manufacturer's serial numbers 7664 and 7704, the Flight Fleets Analyzer shows.

Source: Cirium Dashboard