Alaska launches $1.5bn loyalty programme financing

Alaska Airlines has launched a $1.5bn financing backed by its loyalty programme, Mileage Plan. The proposed senior secured term loan facility was launched September 23, 2024. The company also intends to issue additional pari passu senior secured debt. The Mileage Plan financing proceeds will be used to redeem some outstanding debt acquired during its merger with Hawaiian Airlines, as well as for general corporate purposes and to support its liquidity position. The proposed financing will be secured by collateral associated with Alaska’s loyalty programme. The borrower is AS Mileage Plan IP, which is an indirect and wholly owned subsidiary of