The company’s consent solicitation allows for significant amendments to the original 2022 indenture. By reaching this threshold, Allegiant gains the ability to strip away most existing restrictive covenants and events of default. The agreement also slashes the required notice period for future note redemptions from 30 days down to just three business days, providing the airline with increased financial flexibility.
Allegiant Travel Secures Majority Consent in Debt Restructuring
Allegiant Travel Company has secured the support of holders representing 93.68% of its outstanding 7.250% senior secured notes due 2027, clearing the path to overhaul the debt’s restrictive covenants. The Las Vegas-based carrier confirmed that $377.5 million in principal has been validly tendered ahead of the June 23 deadline.
Investors who participated by the early deadline are eligible for a total consideration of $1,005 per $1,000 of principal, a package that includes a $50 early tender premium. The initial settlement for these notes is slated for June 24, 2026, contingent on the airline successfully closing planned debt financing. For those who did not tender early, the window remains open until July 9, though these later participants will forgo the $50 premium. Allegiant has engaged Barclays Capital to manage the process, while Global Bondholder Services Corporation serves as the information and tender agent.
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