Moody’s assigns Allegiant loan Ba3

Moody’s Investors Service said it assigned a Ba3 rating to Allegiant Travel Co.’s amended senior secured term loan B due 2024. The company expects to reprice the loan, saving up to 150 basis points in annual interest. The outstanding principal will increase by $100 million, to $546.6 million, with no change to the Feb. 5, 2024 maturity date.

Allegiant will use the incremental proceeds to repay the $81 million outstanding on the company’s revolver and the rest for general corporate purposes. The amendments to the term loan do not affect the company’s Ba3 corporate family rating or stable outlook.

“The ratings reflect the financial benefits of Allegiant’s differentiated airline model that provides limited competition across about 70% of its route system. Moody’s expects Allegiant to continue to achieve one of the strongest operating margins of the 22 airlines it rates, supported by the relative fuel efficiency and reliability of its all-Airbus A320ceo family fleet,” said Moody’s in a press release.

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