ALLEGIANT TRAVEL COMPANY ISSUES SENIOR SECURED NOTES

Rhea-AI Summary

Allegiant Travel (NASDAQ: ALGT) issued $650 million of 7.125% Senior Secured Notes due 2031 in a private offering. Most subsidiaries guarantee the notes, which are secured by substantially all assets excluding aircraft, engines, real property and certain other assets, and share collateral with a $150 million undrawn revolver.

According to Allegiant, part of the proceeds funded the purchase and cancellation of $377.534 million of its 7.25% Senior Secured Notes due 2027, with $25.465 million remaining, expected to be redeemed in Q3 2026. Remaining proceeds are for general corporate purposes.

Positive

• $650 million 7.125% Senior Secured Notes due 2031 issued via private offering
• Used proceeds to buy and cancel $377.534 million of 7.25% notes due 2027
• Only $25.465 million of 7.25% 2027 notes remain, expected Q3 2026 redemption
• New notes and undrawn $150 million revolver secured by common collateral

Negative

• None.

News Market Reaction – ALGT

+2.54%

14 alerts

+2.54% Session close to close

$2.10B Market Cap

0.4x Rel. Volume

In the Jun 25 session, ALGT gained 2.54%, reflecting a moderate positive market reaction. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement completes issuance of $650.0 million 7.125% notes and retirement of $377,534,000 7...

Analysis

This announcement completes issuance of $650.0 million 7.125% notes and retirement of $377,534,000 7.25% 2027 notes, extending maturities while leaving a small $25,465,000 balance. Elevated short interest and remaining refinancing steps are key watchpoints.

Key Figures

New notes issued: $650.0 million Coupon rate: 7.125% Existing notes repurchased: $377,534,000 +5 more

8 metrics

New notes issued $650.0 million Aggregate principal of 7.125% Senior Secured Notes due 2031

Coupon rate 7.125% Interest rate on new Senior Secured Notes due 2031

Existing notes repurchased $377,534,000 Principal of 7.25% Senior Secured Notes due 2027 tendered and canceled

Legacy coupon 7.25% Interest rate on Existing Senior Secured Notes due 2027

Existing notes remaining $25,465,000 Outstanding 7.25% Senior Secured Notes due 2027 expected to be redeemed in Q3 2026

Revolving credit facility $150.0 million Currently undrawn Revolving Credit and Guaranty Agreement also secured by collateral

Annual customers 22 million Approximate annual customers served across scheduled, charter and cargo operations

Route network 650 routes Routes operated serving nearly 175 cities in U.S. and select international

Historical Context

5 past events · Latest: Jun 09 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 09	Debt offering priced	Negative	-7.5%	Upsized $650M 7.125% senior secured notes to refinance 2027 debt.
Jun 09	Tender offer launch	Positive	+5.5%	Cash tender offer to retire 7.25% senior secured notes due 2027.
Jun 09	New notes offering	Positive	+5.5%	Announced $500M senior secured notes due 2031 for refinancing and growth.
May 19	Route expansion	Positive	-6.4%	Announced eight new nonstop routes and promotional low introductory fares.
May 18	Operational platform	Neutral	-0.3%	Selected Navan as internal employee travel platform to streamline logistics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news reactions mostly align with the nature of the announcements, with one notable selloff on otherwise expansionary route news.

Key Terms

senior secured notes, revolving credit and guaranty agreement, tender offer, rule 144a, +1 more

5 terms

senior secured notes financial

"issued $650.0 million in aggregate principal amount of its 7.125% Senior Secured Notes due 2031"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

revolving credit and guaranty agreement financial

"The Collateral also secures the Company's currently undrawn $150.0 million Revolving Credit and Guaranty Agreement"

A revolving credit and guaranty agreement is a loan arrangement that lets a company borrow, repay, and borrow again up to a set limit—like a business credit card—while a guaranty makes a third party promise to cover the debt if the borrower can’t. Investors care because it provides short-term liquidity, affects a company’s leverage and interest costs, and introduces repayment and covenant risks that can influence credit ratings and share value.

tender offer financial

"notes due 2027 that were tendered pursuant to the Company's previously announced tender offer for the Existing Notes"

A tender offer is a proposal made by a person or company to buy shares from existing shareholders at a set price, usually higher than the current market value, within a specific time frame. It matters to investors because it can lead to a change in ownership or control of a company, and shareholders must decide whether to sell their shares at the offered price.

View in glossary

rule 144a regulatory

"sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LAS VEGAS, June 24, 2026 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) (the "Company," "we," "us," or "our") announced today that it issued $650.0 million in aggregate principal amount of its 7.125% Senior Secured Notes due 2031 (the "Notes") upon closing of its previously announced private offering.

Each of the Company's subsidiaries, other than Dustland, LLC and certain other insignificant subsidiaries, have guaranteed the Notes (the "Guarantors").  The Notes and the related guarantees are secured by security interests in substantially all of the property and assets of the Company and the Guarantors, excluding aircraft, aircraft engines, real property and certain other assets (the "Collateral").  The Collateral also secures the Company's currently undrawn $150.0 million Revolving Credit and Guaranty Agreement dated as of August 17, 2022.

The Company used a portion of the net proceeds from the sale of the Notes to purchase $377,534,000 aggregate principal amount of the Company's 7.25% Senior Secured Notes due 2027 (the "Existing Notes") that were tendered pursuant to the Company's previously announced tender offer for the Existing Notes, and all interest, costs, fees, expenses and other amounts due and payable in respect thereof.  The Company canceled the Existing Notes purchased today. $25,465,000 aggregate principal amount of the Existing Notes remain outstanding and the Company expects to redeem such remaining Notes in third quarter 2026.  The Company will use the balance of the net proceeds of the Notes for general corporate purposes. 

The Notes and the related guarantees have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction.  The Notes and the related guarantees were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.

This press release does not constitute a notice of redemption with respect to the Notes.

Allegiant – Together We Fly™

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most.  Through Allegiant Air and Sun Country Airlines, the company serves approximately 22 million annual customers across scheduled passenger, charter and cargo operations.  Together, the airlines operate more than 650 routes serving nearly 175 cities throughout the United States and select international destinations.  Allegiant is committed to providing affordable travel options, operational excellence and long-term value for customers, employees, communities and shareholders.  For more information, visit Allegiant.com.

Media information, including photos, is available at http://gofly.us/iiFa303wrtF

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

No Offer or Solicitation

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, any securities in any jurisdiction in contravention of applicable law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/allegiant-travel-company-issues-senior-secured-notes-302810022.html

SOURCE Allegiant Travel Company

FAQ

What senior secured notes did Allegiant (NASDAQ: ALGT) issue in June 2026?

Allegiant issued $650 million of 7.125% Senior Secured Notes due 2031 in a private offering. According to Allegiant, the notes are guaranteed by most subsidiaries and secured by substantially all property and assets, excluding aircraft, aircraft engines, real property and certain other assets.

How will Allegiant use the proceeds from its $650 million 7.125% senior secured notes (ALGT)?

Allegiant is using a portion of the net proceeds to purchase its 7.25% Senior Secured Notes due 2027. According to Allegiant, $377.534 million of these notes were bought and canceled, with the remaining proceeds earmarked for general corporate purposes.

What is happening to Allegiant's 7.25% Senior Secured Notes due 2027 (ALGT)?

Allegiant purchased and canceled $377.534 million of its 7.25% Senior Secured Notes due 2027. According to Allegiant, $25.465 million of these existing notes remain outstanding and are expected to be redeemed during the third quarter of 2026.

What collateral secures Allegiant's new 7.125% Senior Secured Notes due 2031 (ALGT)?

The new notes are secured by security interests in substantially all of Allegiant's and guarantors' property and assets. According to Allegiant, collateral excludes aircraft, aircraft engines, real property and certain other assets and also secures its undrawn $150 million revolving credit agreement.

Are Allegiant's new senior secured notes (ALGT) registered under the Securities Act of 1933?

The notes and related guarantees are not registered under the Securities Act of 1933 or other securities laws. According to Allegiant, they were offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S.

Does Allegiant's June 2026 announcement constitute an offer to sell ALGT securities?

The announcement explicitly does not constitute an offer to sell or a solicitation to buy any securities. According to Allegiant, it is for informational purposes only and not an offer or sale in any jurisdiction contrary to applicable law.