Allegiant Travel launches $450 million term B at Libor plus 425 bps

By Sara Rosenberg

New York, Jan. 14 – Allegiant Travel Co. launched on Monday its $450 million five-year senior secured term loan B (Ba3/BB-) with price talk of Libor plus 425 basis points with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Covenants include a maximum total gross leverage ratio of 5 times, tested quarterly, and a minimum unrestricted liquidity threshold of $300 million, tested quarterly.

Barclays is the lead arranger on the deal and the administrative agent.

Commitments are due at noon ET on Jan. 24, the source added.

Proceeds will be used to refinance the company’s existing 5.5% senior notes due 2019.

Pro forma gross total leverage is 3.6 times and net total leverage is 2.3 times.

Allegiant is a Las Vegas-based operator of a passenger airline marketed to leisure travelers in small cities.

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