Finance

Allegiant inks new PDP facility

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Allegiant inks new PDP facility

On November 1, 2023, Allegiant Travel Company and its subsidiary, Allegiant Air, entered into a credit facility with Runway Seven Lender, an entity managed by Carlyle Aviation Management involving full-recourse loans to be made available from time to time.   

The loans are intended to finance a portion of the pre-delivery payments (PDPs) due to Boeing for the purchase agreement signed in December 2021. 

Upon execution of the facility, the lender commits $157,709,050 with $103,069,050 drawn following execution. The facility has a maturity date of June 30, 2025. 

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.