Allegiant Travel borrows $213 million under financing agreement

By Rebecca Melvin

New York, June 28 – Allegiant Travel Co. through a wholly owned subsidiary borrowed $213 million under a financing agreement secured by 23 Airbus aircraft, according to an 8-K filing with the Securities and Exchange Commission on Friday.

The borrowing was through an agreement with Bank of Utah as agent for Sumitomo Mitsui Banking Corp. and Banc of America Leasing & Capital LLC.

The borrowing bears interest at a variable rate and will be payable in quarterly installments with a final balloon payment due in September 2024.

The proceeds from the loan will be used for repayment of existing debt on the aircraft and for general corporate purposes.

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

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