Allegiant Travel Co. Launches Tender Offer for Senior Secured Notes

The tender offer, which is part of a broader consent solicitation, seeks to acquire the Notes with a tender consideration of $955.00 per $1,000 principal amount. Holders who tender their Notes by the Early Tender Deadline of June 23, 2026, will also receive an additional early tender premium of $50.00, bringing the total consideration to $1,005.00 per $1,000 principal amount.

Notably, holders who participate in the tender must deliver consents for the proposed amendments to the Indenture, which governs the Notes. These amendments aim to eliminate most restrictive covenants and specific events of default, thereby simplifying the terms for the bondholders.

Upon the successful completion of the tender offer and consent solicitation, Allegiant plans to execute a Supplemental Indenture to implement the proposed amendments. This move is part of the company’s ongoing strategy to optimize its capital structure and improve operational flexibility.

Should a majority of the Notes' holders consent to the proposed amendments, the company will proceed with the execution of the Supplemental Indenture, which will become effective on the Initial Settlement Date or, if no Initial Settlement Date occurs, on the Final Settlement Date.

For any Notes that are not purchased through the tender offer, Allegiant may initiate a notice of redemption on August 15, 2026, at a redemption price of 100% of the aggregate principal amount plus accrued interest. This potential redemption is contingent upon the company’s discretion and successful completion of the tender offer.

Barclays Capital Inc. has been retained as the dealer-manager and solicitation agent for this tender offer, while Global Bondholder Services Corporation will act as the Information Agent and the Tender Agent.

This proactive approach reflects Allegiant’s commitment to maintaining a robust financial position in a competitive travel industry, which has seen substantial recovery post-pandemic.

Allegiant Travel Company's tender offer and consent solicitation is a significant step towards enhancing its financial health and operational agility. The company’s strategic decision to amend the terms of its Notes could pave the way for improved financial performance and shareholder value in the long run. As Allegiant continues to connect millions of customers to their desired destinations, the implications of this tender offer will be closely monitored by investors and industry analysts alike.