Allegiant Travel Company (NASDAQ: ALGT) has announced an agreement with the US Department of the Treasury to receive USD 171.9 million in emergency relief under the Coronavirus Aid, Relief and Economic Security (CARES Act), the company said.
The Payroll Support Program (PSP) funds are targeted to support team member salaries and benefits for Allegiant´s 4,500-member workforce.
The PSP is expected to provide Allegiant with USD 171.9 million in funding and will cover approximately 76 percent of budgeted payroll and benefit costs through September 30, 2020. Of that funding, USD 21 million will be in the form of a 10-year term, low-interest loan, to be repaid at any time prior to maturity at par. Under the loan, the company will issue warrants to the US Department of the Treasury to purchase 25,890 shares of common stock with a cash settlement right at the company´s option.
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.