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Allegiant Travel Company
has
pre-paid the company's $125 million senior secured term loan facility, which
was scheduled to mature in March 2017. In addition, the company has borrowed
$45.3 million from Wells Fargo Bank. Both of these transactions occurred on
April 11, 2014.
"This decision allows us to refinance more expensive debt and also provides
flexibility to maintain future fleet growth as well as return cash to
shareholders," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant
Travel Company. "We are pre-paying our term loan with a payout of the balance
of $121.3 million. After giving effect to these two deals, our total debt
balance will be $149 million, which improves the company's already strong
balance sheet."
The company has paid off the $121.3 million balance of the term loan through a
combination of the $45.3 million loan received from Wells Fargo Bank and $76
million of internally generated cash. The elimination of the term loan
unencumbers 53 MD-80 aircraft, as well as four 757 aircraft. The company has
pledged the 53 MD-80 aircraft as collateral under the Wells Fargo Bank loan.
As of today, the company has 53 encumbered MD-80 aircraft, seven encumbered
A320 aircraft, one encumbered A319 aircraft (Airbus aircraft were pledged in
previous financings), one encumbered 757 aircraft, and five unencumbered 757
aircraft.
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