ALLEGIANT TRAVEL COMPANY PRICES UPSIZED $650 MILLION OFFERING OF SENIOR SECURED NOTES

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) priced an upsized private offering of $650 million 7.125% Senior Secured Notes due 2031 at 99.479% of principal. The deal was increased from $500 million. Notes are expected to be issued June 24, 2026, subject to closing conditions.

According to Allegiant, net proceeds will refinance its $403 million 7.25% Senior Secured Notes due 2027, with any remaining funds used for general corporate purposes. The new notes will be guaranteed by most subsidiaries and secured by substantially all assets, excluding aircraft, engines, real estate and certain other assets.

Positive

• Upsized senior secured notes offering to $650 million from $500 million
• Refinances $403 million 7.25% Senior Secured Notes due 2027
• Locks in funding with 7.125% coupon and 2031 maturity
• Proceeds beyond refinancing available for general corporate purposes

Negative

• New notes principal of $650 million exceeds $403 million existing notes refinanced
• Notes are senior secured, pledging substantially all company and guarantor assets as collateral

News Market Reaction – ALGT

-7.54%

27 alerts

-7.54% Session close to close

+3.4% Peak Tracked

-7.0% Trough Tracked

$1.64B Market Cap

0.4x Rel. Volume

In the Jun 10 session, ALGT declined 7.54%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.4% during that session. Argus tracked a trough of -7.0% from its starting point during tracking. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

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LAS VEGAS, June 9, 2026 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) (the "Company," "we," "us," or "our") has agreed to sell $650.0 million in aggregate principal amount of its 7.125% Senior Secured Notes due 2031 (the "Notes") at an offering price of 99.479% of their principal amount to investors in a private offering. The size of the offering was increased by $150.0 million from the previously announced offering size of $500.0 million.  The Notes are expected to be issued on June 24, 2026, subject to customary closing conditions.

Each of the Company's subsidiaries, other than Dustland, LLC and certain other insignificant subsidiaries (the "Guarantors"), will guarantee the Notes.  The Notes and the related guarantees will be 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").  Some of the Collateral, other than the property and assets of Sun Country Airlines Holdings, Inc. and its subsidiaries which will secure the Notes and the related guarantees, currently secures the Company's existing $403.0 million 7.25% Senior Secured Notes due 2027 (the "Existing Notes") as well as a currently undrawn $150.0 million revolving credit facility.

The Company will use the net proceeds from the sale of the Notes to refinance in full the Existing Notes and all interest, costs, fees, expenses and other amounts due and payable in respect thereof and to use the balance 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 are being 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.

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-prices-upsized-650-million-offering-of-senior-secured-notes-302795946.html

SOURCE Allegiant Travel Company

FAQ

What did Allegiant (NASDAQ: ALGT) announce about its $650 million senior secured notes offering?

Allegiant announced pricing of $650 million 7.125% Senior Secured Notes due 2031 in a private offering. According to Allegiant, the notes priced at 99.479% of principal and are expected to be issued on June 24, 2026, subject to customary closing conditions.

How will Allegiant use the proceeds from the $650 million ALGT notes due 2031?

Allegiant plans to use net proceeds to refinance its $403 million 7.25% Senior Secured Notes due 2027. According to Allegiant, remaining funds after paying related interest, fees and expenses will be used for general corporate purposes.

What are the key terms of Allegiant’s 7.125% Senior Secured Notes due 2031 (ALGT)?

The new Allegiant notes carry a 7.125% coupon, mature in 2031 and priced at 99.479% of principal. According to Allegiant, they will be guaranteed by most subsidiaries and secured by substantially all company and guarantor property and assets, excluding specified asset classes.

Who can buy Allegiant’s $650 million Senior Secured Notes (NASDAQ: ALGT)?

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

What collateral secures Allegiant’s new 7.125% Senior Secured Notes due 2031?

The notes and guarantees will be secured by security interests in substantially all company and guarantor assets. According to Allegiant, collateral excludes aircraft, aircraft engines, real property and certain other assets, while some collateral also secures existing debt and a revolving credit facility.

How does Allegiant’s new $650 million debt compare with its existing 7.25% notes due 2027?

Allegiant’s new offering totals $650 million, compared with $403 million of existing 7.25% Senior Secured Notes. According to Allegiant, proceeds will fully refinance those existing notes, with the balance available for fees, expenses and general corporate purposes.