Crédit Agricole CIB closed a new three-year, $100 million senior secured revolving credit facility with Allegiant Travel Company. Crédit Agricole CIB acted as sole arranger and bookrunner for the facility.
Allegiant is a longtime client of Crédit Agricole CIB, with this senior secured revolving credit facility being the foundation of its relationship with the company since 2015. With this latest refinancing, the facility will continue to further enhance Allegiant’s liquidity position and support the company’s order book and introduction of new technology assets.
Following Allegiant’s recent release of its inaugural ESG report in December 2022, this senior secured revolving credit facility will align with the company’s ongoing ESG initiatives. For the first time, the transaction will include a requirement for Allegiant to gradually secure a portion of the borrowing base exclusively with new technology assets over the term of the facility as it takes delivery of its new MAX 7/8 aircraft and LEAP 1B engines over the next three years.
“Credit Agricole CIB has been an important partner in supporting our fleet and financing initiatives since 2015. We are pleased to have closed this new facility with the bank as we prepare to begin taking deliveries from our Boeing orderbook later this year,” Robert Neal, senior vice president and CFO at Allegiant, said. “The new collateral requirement in this financing highlights our commitment to reducing emissions through introduction of new technology equipment.”
“We appreciate the partnership with Allegiant and are delighted to continue our support of the Company’s fleet investments and new-technology initiatives with this new facility,” Thomas Jean, managing director and senior banker at Crédit Agricole CIB, said.
Allegiant Travel Company currently operates a fleet of 124 Airbus A320ceo family aircraft and recently announced the order of up to 100 Boeing 737 MAX aircraft.
