Allegiant Travel Completes $650 Million Debt Refinancing

The newly issued notes carry a 7.125% interest rate and are backed by a broad security interest in the company's assets, excluding aircraft, engines, and real property. This collateral also supports the carrier's existing $150 million revolving credit facility established in 2022. Subsidiaries of the company have provided guarantees for the new debt, though specific entities like Dustland, LLC remain excluded from these obligations.

Management utilized the proceeds to purchase $377.5 million of the 7.25% senior secured notes maturing in 2027, which have since been cancelled. With approximately $25.5 million of those older notes still outstanding, the company intends to complete a full redemption during the third quarter of 2026. The remaining funds from the new issuance are earmarked for general corporate purposes. Because the offering was conducted as a private placement, the securities were sold exclusively to qualified institutional buyers and specific non-U.S. investors, bypassing public registration under the Securities Act of 1933.