Moody’s rates Allegiant Travel loan Ba3

Moody's Investors Service said it affirmed Allegiant Travel Co.'s Ba3 corporate family rating, Ba3-PD probability of default rating and SGL-3 speculative grade liquidity rating, and assigned a Ba3 rating to the announced senior secured term loan B due 2024.

Proceeds of the new term loan will fund the tender for the company's $450 million senior unsecured notes due in July 2019, which Allegiant launched on Jan. 9.

The senior unsecured rating of B1 is unaffected by the action.

The outlook is stable.

The agency said the ratings reflect a belief that Allegiant will sustain a competitive, mid-teens operating margin in upcoming years.

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