Allegiant Borrows All $177.5 Million Of Aircraft-Secured Facility, Plus $71.8 Million For Boeing Deposits

Allegiant Travel, through a wholly owned subsidiary, borrowed the entire $177.5 million available under a credit facility secured by certain aircraft in its fleet, according to an 8-K filed Monday. The draw happened Tuesday, October 13, and the company had previously reported the facility.

What the 8-K says

The loans under the aircraft-secured facility carry a fixed interest rate. Payments amortize quarterly, beginning in July 2027, over a term of five to six years depending on the aircraft grouping.

The filing says proceeds from any drawdowns will support upcoming aircraft deliveries and general corporate purposes.

The same 8-K covers a second borrowing. Before the end of the third quarter of 2026, a wholly owned subsidiary drew $71.8 million under a previously reported $231.0 million facility. That money funds part of the pre-delivery payments owed to The Boeing Company for certain Boeing 737-MAX aircraft.

Terms of the Boeing loans

These loans are payable on or before delivery of the related aircraft, and no later than March 31, 2028. They carry floating interest rates based on SOFR (a benchmark short-term rate) plus a margin.

They are secured by a collateral assignment of the purchase contract for the associated aircraft. After this draw, $159.3 million of the facility remains undrawn.

What it changes for holders

The company now carries the full $177.5 million of fixed-rate, amortizing aircraft debt, while its Boeing deposit borrowing floats with SOFR. Those two structures differ in how rate moves would affect interest cost.

Shares of Allegiant closed at $66.31 in Monday trading, the day the filing was signed by Robert Neal, the company's President and Chief Financial Officer.

The Boeing-related loans have a hard stop of March 31, 2028, and the first amortizing payment on the aircraft-secured loans falls in July 2027.

Sources

• 8-K Filing — Allegiant Travel CO (ALGT) — SEC EDGAR