Allegiant Travel Company (NASDAQ: ALGT) has pre-paid the company’s $125 million senior secured term loan facility, which was scheduled to mature in March 2017. In addition, the company has borrowed $45.3 million from Wells Fargo Bank. Both of these transactions occurred on April 11, 2014.
„This decision allows us to refinance more expensive debt and also provides flexibility to maintain future fleet growth as well as return cash to shareholders,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. „We are pre-paying our term loan with a payout of the balance of $121.3 million. After giving effect to these two deals, our total debt balance will be $149 million, which improves the company’s already strong balance sheet.”
The company has paid off the $121.3 million balance of the term loan through a combination of the $45.3 million loan received from Wells Fargo Bank and $76 million of internally generated cash. The elimination of the term loan unencumbers 53 MD-80 aircraft, as well as four 757 aircraft. The company has pledged the 53 MD-80 aircraft as collateral under the Wells Fargo Bank loan.
As of today, the company has 53 encumbered MD-80 aircraft, seven encumbered A320 aircraft, one encumbered A319 aircraft (Airbus aircraft were pledged in previous financings), one encumbered 757 aircraft, and five unencumbered 757 aircraft.
Source / Author: Allegiant Travel Company