Allegiant Travel lifts credit agreement to $150 million via Gleacher

By Toni Weeks

San Diego, Nov. 27 - Allegiant Travel Co. amended its credit agreement with Gleacher Products Corp. as administrative agent, lifting the base available amount to $150 million, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the agreement, the available amount is increased by a percentage of the company's excess cash flow and reduced by stock repurchases, cash dividends and other items. The available amount may be used for restricted payments under the credit agreement, capital expenditures in excess of the limits otherwise applicable under the agreement and other limited purposes.

The amendment revises the capital expenditures covenant such that in addition to annual capital expenditures of up to $100 million, Allegiant would have the ability to incur up to an additional $200 million of capital expenditures over the life of the loan, subject to any portion of the additional amount used in a year being restored for use in future years if the company's leverage ratio falls below 1.0 to 1.0 at year-end.

Bank of New York Mellon is the collateral agent for the credit facility.

Las Vegas-based Allegiant Travel is a leisure travel company focused on providing travel services to residents of small, underserved cities in the United States.

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