By Paul A. Harris
Portland, Ore., Aug. 10 – Allegiant Travel Co. priced an upsized $550 million issue of 7¼% five-year senior secured first-lien notes (Ba3/BB-/BB+) at 99.486 to yield 7 3/8% in a Wednesday drive- by, according to market sources.
The issue size increased from $500 million.
The yield printed at the inside of yield talk in the 7½% area. Initial guidance was in the 7¾% area.
The deal wound up being 4½-times oversubscribed, according to a sellside source, who added that it came into the market on the back of $750 million of reverse inquiry.
The notes were going out Wednesday afternoon at 100.75 bid, 101.25 offered, the sellsider said.
Joint bookrunner Barclays will bill and deliver. Other joint bookrunners were MUFG and Credit Agricole CIB.
The notes are secured by first priority security interest in substantially all non-aircraft assets, including the company’s loyalty program, brand intellectual property, fleet equity, spare parts, flight simulators, ground service equipment, accounts receivable, cash and equivalents, and various other assets.
The coupon steps up by 2% for any period during which unrestricted liquidity is less than $300 million.
The Las Vegas-based low-cost airline plans to use the proceeds plus cash on hand to refinance its term loan B due 2024.
| Issuer: | Allegiant Travel Co.
|
| Amount: | $550 million, increased from $500 million
|
| Issue: | Senior secured first-lien notes
|
| Maturity: | Aug. 15, 2027
|
| Bookrunners: | Barclays (bill and deliver), MUFG and Credit Agricole CIB
|
| Coupon: | 7¼%
|
| Price: | 99.486
|
| Yield: | 7 3/8%
|
| Spread: | 446 bps
|
| First call: | Aug. 15, 2024 at 103.625
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 17
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% area
|
| Marketing: | Drive-by
|
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