Allegiant Travel Closes $650 Million 7.125% Senior Secured Notes Due 2031
Allegiant Travel Company closed a $650.0 million private offering of 7.125% senior secured notes maturing in 2031 on June 24. The notes are guaranteed by each of the carrier's subsidiaries except Dustland, LLC and certain other insignificant subsidiaries. The company did not disclose the intended use of proceeds.
Allegiant Travel Company closed a private offering of $650.0 million aggregate principal amount of 7.125% senior secured notes due 2031 on June 24 [1]. The notes are guaranteed by each of the carrier's subsidiaries except Dustland, LLC and certain other insignificant subsidiaries [1].
The Las Vegas–based ultra-low-cost carrier structured the issuance as senior secured debt, indicating the notes rank ahead of unsecured obligations and are collateralized by company assets. The 7.125% coupon prices the airline's credit risk above the current risk-free rate and reflects investor appetite for secured aviation paper in mid-2026. The five-year tenor pushes maturity to 2031, extending Allegiant's liability profile and reducing near-term refinancing pressure.
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