Allegiant Travel flexes $450 million term B to Libor plus 450 bps

By Sara Rosenberg

New York, Jan. 29 – Allegiant Travel Co. increased pricing on its $450 million five-year senior secured term loan B (Ba3/BB-) to Libor plus 450 basis points from Libor plus 425 bps, according to a market source.

In addition, the original issue discount on the term loan B was changed to 98 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0% Libor floor.

Barclays is the lead arranger on the deal and the administrative agent.

Proceeds will be used to refinance the company’s existing 5˝% senior notes due 2019.

Closing is expected during the week of Feb. 4, the source added.

Pro forma gross total leverage is 3.6 times, and net total leverage is 2.3 times.

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

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