Allegiant Travel Company (NASDAQ: ALGT) has announced the closing of the amended agreement of its existing term loan with Barclays Bank PLC as administrative agent, which effects a repricing and upsizing of the term loan, the company said.
Barclays Bank PLC, Goldman Sachs Lending Partners LLC and Credit Agricole Corporate and Investment Bank served as lead arrangers, bookrunners and syndication agents for the transaction.
With the repricing, the company has achieved a beneficial interest rate reduction of 150 basis points, as the interest rate based on the London Interbank Offered Rate has been reduced to LIBOR + 3.0 percent. The company estimates this will reduce interest expense on the initial loan balance by approximately USD 6.7 million per year.
The company has increased its borrowings under the term loan by USD 100 million to USD 545.5 million. The loan increase was issued at par. The proceeds from the loan increase will be used to repay other debt, to pay transaction costs, and for general corporate purposes.
Allegiant Travel Company is a Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with premier leisure experiences – from vacations to hometown family entertainment.