Allegiant Travel Company has priced $650 million of senior secured notes, increasing the offering as it prepares to refinance existing debt and support corporate needs.
Allegiant Travel Company has agreed to sell $650 million of 7.125% senior secured notes due in 2031, expanding the planned offering by $150 million from its previously announced $500 million size. The private offering was priced at 99.479% of principal amount, according to the company’s June 9, 2026 announcement. The notes are expected to be issued on June 24, 2026, subject to customary closing conditions, placing debt refinancing at the centre of the transaction.
The financing gives Allegiant a new long-dated secured instrument while addressing an existing borrowing obligation. The company said the net proceeds will be used to refinance in full its $403 million of 7.25% senior secured notes due in 2027, including related interest, costs, fees, expenses and other amounts payable. Any remaining proceeds are intended for general corporate purposes, rather than a specifically identified expansion project.
The new notes will be guaranteed by the company’s subsidiaries other than Dustland, LLC and certain other insignificant subsidiaries. The notes and guarantees will be secured by interests in substantially all property and assets of Allegiant and the guarantors, although aircraft, aircraft engines, real property and certain other assets are excluded. Some of that collateral currently secures the existing notes and an undrawn $150 million revolving credit facility.
The structure reflects a capital-management decision more than a change to the customer-facing travel proposition. Allegiant said the securities are being offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A and to certain non-US persons in offshore transactions under Regulation S. The notes and related guarantees have not been registered under the Securities Act of 1933 or the securities laws of any other jurisdiction.
Allegiant described itself as an integrated travel company with an airline at its heart, operating through Allegiant Air and Sun Country Airlines across scheduled passenger, charter and cargo operations. It said the airlines serve approximately 22 million annual customers, operate more than 650 routes and reach nearly 175 cities in the United States and selected international destinations. Subject to closing, the June 24, 2026 issuance would give Allegiant a defined refinancing path while leaving the balance of the proceeds available for broader corporate purposes.
