Alaska has upsized its senior secured term loan B due 2031 - its loyalty term loan facility - to $1.25bn on October 1, 2024. The offering was previously priced at $750 million.
The company expects to close the loyalty financings on October 15, 2024.
Alaska's upsized offering came in conjunction with it pricing its previously disclosed Mileage Plan offering on the same day. The loyalty-backed private offering consists of $625 million 5.021% senior secured notes due 2029 and $625 million 5.308% senior secured notes due 2031.
The proceeds are expected to fund the reserve account for the notes, to redeem or repay certain outstanding debt, and for general corporate purposes.
Alaska also delivered to holders of the 5.750% senior secured notes due 2026, issued by its recently acquired Hawaiian Airlines brand and its loyalty programme, Hawaiian Miles, a notice of redemption for all of the outstanding $6.3 million 2026 notes.
In addition, it also delivered to the holders of the Hawaiian 11.000% senior secured notes due 2029 a notice of redemption for all of the outstanding $984.9 million 2029 notes.
The redemptions will be funded from a portion of the proceeds from its loyalty financings.
In other news, the airline launched its new startup with Odysee in partnership with UP.Labs. Odysee is a new flight schedule optimisation software platform that leverages AI and large data sets to optimise asset configuration for the airline industry as well as other logistics operators.
Odysee launched with $5 million in seed funding led by UP.Partners.