Allegiant Travel unit gets $175 million construction loan due 2023

By Sarah Lizee

Olympia, Wash., March 18 – Allegiant Travel Co. wholly owned subsidiary Sunseeker Florida, Inc. entered into a construction loan agreement providing for an up to $175 million loan due March 2023.

The company entered into the agreement on Monday with lenders affiliated with TPG Sixth Street Partners, LLC, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 700 basis points.

Proceeds from the loan will be used to finance the construction of phase one of Sunseeker Resorts at Charlotte Harbor.

The $175 million of financing is the initial funding of up to $1 billion that the lender may offer to provide for future phases of the Sunseeker project.

The lender will provide the final $175 million of funding for the project with the initial funding to come from the company.

The loan is secured by the project and, for a period of time, the surrounding land owned by Sunseeker Florida.

To support the credit, the company has guaranteed one-third of the debt, has agreed to bear responsibility under a non-recourse carve-out guaranty and has agreed to guarantee completion of the project under approved plans and specifications.

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

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