Allegiant Travel (NASDAQ: ALGT) adds Boeing and Airbus aircraft credit lines
Rhea-AI Filing Summary
Allegiant Travel Company entered into an amended pre-delivery payment financing facility and additional secured credit arrangements supporting its aircraft fleet.
On July 27, 2026 it amended a PDP Facility with Runway Seven Lender LLC, providing a $231,028,700 full‑recourse loan commitment, undrawn, maturing March 31, 2028, to fund Boeing aircraft pre‑delivery payments, secured by a first‑priority collateral assignment of the relevant Boeing purchase agreement. On July 24, 2026 it also established an undrawn credit facility of up to $177.5 million secured by certain Airbus aircraft, with fixed‑rate, SOFR‑based notes and quarterly amortization over five to six years from July 2027, for general corporate purposes. In July 2026 it borrowed $132.0 million under a previously disclosed $176.0 million Boeing 737‑MAX facility, now fully drawn, with floating‑rate loans and 10‑year quarterly repayments used to finance recent aircraft deliveries.
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8-K Event Classification
2 items: 1.01, 2.03
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Key Figures
PDP Facility Commitment: $231,028,700
PDP Facility Maturity: March 31, 2028
Airbus Credit Facility Size: $177.5 million
+4 more
7 metrics
PDP Facility Commitment
$231,028,700
Available commitment under amended Boeing PDP Facility as of execution
PDP Facility Maturity
March 31, 2028
Maturity date for all loans under the Boeing PDP Facility
Airbus Credit Facility Size
$177.5 million
Maximum borrowings under new credit facility secured by certain Airbus aircraft
Airbus Facility Amortization Start
July 2027
Quarterly amortizing payments begin, over a five to six year term
New Boeing 737-MAX Borrowing
$132.0 million
Amount borrowed in July 2026 under previously reported Boeing 737-MAX facility
Boeing 737-MAX Facility Size
$176.0 million
Total capacity of fully drawn Boeing 737-MAX credit facility
Boeing 737-MAX Loan Tenor
10 years
Floating-rate loans provide for quarterly payments over 10-year terms
Key Terms
pre-delivery payments, full-recourse loans, Term SOFR, collateral assignment, +1 more
5 terms
pre-delivery payments financial
"The Loans are intended to finance a portion of the pre-delivery payments (“PDPs) due to The Boeing Company"
Pre-delivery payments are sums a buyer pays in advance to a seller or manufacturer for goods or services that have not yet been handed over, commonly used for products built to order such as vehicles, machinery, or large equipment. They matter to investors because these payments show cash received before revenue is earned and create a liability on the balance sheet—like a customer putting a deposit on a custom order, they indicate upcoming deliveries, production progress, and the risk that the seller must either fulfill the order or return the money.
full-recourse loans financial
"involving full-recourse loans (“Loans”) to be made available from time to time"
Term SOFR financial
"The interest rate on the Loans is based on one-month Term SOFR."
Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.
collateral assignment financial
"secured primarily by a perfected first priority collateral assignment of the Boeing Purchase Agreement"
amortizing payments financial
"will provide for quarterly amortizing payments beginning in July 2027 over a term of five to six years"
Regular payments that combine interest and principal so a debt balance steadily falls over time, like paying down a mortgage with a fixed monthly amount that gradually shifts from mostly interest to mostly principal. For investors, amortizing payments matter because they provide predictable cash flow, reduce credit risk as the borrower’s outstanding balance decreases, and affect yield and timing of returns compared with interest-only or bullet loans.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What PDP financing facility did Allegiant Travel (ALGT) amend for Boeing aircraft?
Allegiant amended a PDP Facility with Runway Seven Lender LLC, providing a $231,028,700 full‑recourse loan commitment. The undrawn facility matures on March 31, 2028 and is secured by a first‑priority collateral assignment of the Boeing Purchase Agreement for specified aircraft.
How large is Allegiant Travel’s new Airbus-secured credit facility (ALGT)?
Allegiant entered into a new credit facility allowing borrowings of up to $177.5 million, secured by certain Airbus aircraft. Any notes will bear fixed interest based on SOFR plus a margin, with quarterly amortizing payments over five to six years starting in July 2027.
What is the purpose of Allegiant Travel’s new credit facilities (ALGT)?
The amended PDP Facility is intended to finance a portion of pre‑delivery payments to Boeing for specified aircraft. The new Airbus‑secured credit facility will fund general corporate purposes, while a separate Boeing 737‑MAX facility finances recent aircraft deliveries.
How much did Allegiant Travel (ALGT) borrow under its Boeing 737-MAX facility in July 2026?
In July 2026, Allegiant, through wholly owned subsidiaries, borrowed $132.0 million under a previously reported $176.0 million credit facility secured by Boeing 737‑MAX aircraft. The loans carry floating interest rates and provide for quarterly payments over 10 years.
Are Allegiant Travel’s new Boeing PDP and Airbus credit facilities currently drawn (ALGT)?
Both the amended Boeing PDP Facility and the new Airbus‑secured credit facility are currently undrawn. They provide committed borrowing capacity for future needs, including Boeing pre‑delivery payments, general corporate purposes, and support for the company’s aircraft fleet financing plans.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
_____________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2026
| (Exact name of registrant as specified in its charter) | ||||||||||||||||||||||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||||||||||||||
Registrant’s telephone number, including area code: (702 ) 851-7300
| N/A | ||||||||||||||||||||||||||||||||
| (Former name or former address, if changed since last report.) | ||||||||||||||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.001 | ALGT | NASDAQ Stock Market | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 1933 (Section 17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 1 Registrant's Business and Operations
Item 1.01 Entry into a Material Definitive Agreement.
On July 27, 2026, Allegiant Travel Company (the “Company”) and its subsidiary, Allegiant Air, LLC (“Allegiant Air”) entered into an amendment to the PDP Facility Agreement dated November 1, 2023 with Runway Seven Lender LLC (the “Lender”), an entity managed by Carlyle Aviation Management Limited (the “Facility”) involving full-recourse loans (“Loans”) to be made available from time to time. The obligations under the Facility are guaranteed by the Company. The Loans are intended to finance a portion of the pre-delivery payments (“PDPs) due to The Boeing Company (“Boeing”) with respect to certain aircraft subject to the purchase agreement dated December 31, 2021, as amended to date, between Allegiant Air and Boeing (such aircraft, the “Aircraft” and with respect to such Aircraft only, the “Boeing Purchase Agreement”).
Upon execution of the Facility, $231,028,700 is the available commitment of the Lender. The maturity date of all Loans under the Facility is March 31, 2028, with a mandatory repayment required on or before the delivery of the associated aircraft. The Facility is undrawn at the current time.
The interest rate on the Loans is based on one-month Term SOFR.
The Loans are secured primarily by a perfected first priority collateral assignment of the Boeing Purchase Agreement with respect to the Aircraft and related rights.
The Facility also includes certain customary provisions for events of default.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the definitive agreement, which the Company intends to file as an exhibit to the Company’s quarterly report on Form 10-Q for the quarter ending September 30, 2026.
Section 2 Financial Information
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On July 24, 2026, the Company, through a wholly owned subsidiary, entered into a credit facility under which it will be able to borrow up to $177.5 million to be secured by certain Airbus aircraft in the Company’s fleet. Any notes under the facility will bear interest at a fixed rate, based on SOFR plus a margin, to be determined at drawdown and will provide for quarterly amortizing payments beginning in July 2027 over a term of five to six years. The proceeds from any drawdowns will be used for general corporate purposes. The credit facility is undrawn at the current time.
In July 2026, the Company, through wholly owned subsidiaries, borrowed $132.0 million under a previously reported $176.0 million credit facility secured by Boeing 737-MAX aircraft, which is now fully drawn. The loans provide for floating interest rates and quarterly payments over terms of 10 years. The loan proceeds were used to finance recent aircraft deliveries.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: July 30, 2026 | ALLEGIANT TRAVEL COMPANY | ||||||||||
| By: | /s/ Robert Neal | ||||||||||
| Name: | Robert Neal | ||||||||||
| Title: | President, Chief Financial Officer | ||||||||||