Allegiant Travel Company has borrowed $450 million under a Credit and Guaranty Agreement with certain of its subsidiaries, excluding Sunseeker Resorts, as well as other lenders. Barclays acted as syndication agent, lead arranger and administrative agent. The loan is secured by substantially all property and assets of the company and the term loan guarantors, excluding aircraft and aircraft engines.
The five-year term loan is priced at LIBOR + 4.5% or the alternate base rate + 3.5%, respectively, subject to certain adjustments. The agreement contains customary financial covenants, including requiring the company to maintain minimum liquidity and a maximum total leverage ratio.
Allegiant intends to use the proceeds to prepay or purchase existing indebtedness, including its 5.50% senior notes due 2019, and for working capital or other general corporate purposes.