Business Context and Reporting Period
Company: Allegiant Travel Company
Filing Type: Form 8-K (Current Report)
Date of Report: December 29, 2015
Event: Creation of a direct financial obligation via a new senior secured revolving credit facility.
Key Financial Metrics
This filing reports the establishment of a new credit facility rather than periodic financial performance metrics (revenue, profit, cash flow, or margins). Key terms of the obligation include:
- Facility Size: Up to $56.0 million.
- Collateral: Value of Airbus A320 Series aircraft placed in the collateral pool.
- Term: 24 months, with potential for two one-year extensions at the lender's option.
- Interest Rate: Floating rate based on LIBOR.
- Usage of Proceeds: General corporate purposes.
Material Changes
The filing discloses a material change in the company's capital structure through the entry into a new debt agreement on December 29, 2015. The amount available for borrowing is variable, dependent on the specific aircraft collateral selected by the company.
Guidance, Outlook, and Risks
Management Commentary: The filing does not provide forward-looking guidance, earnings outlook, or specific management commentary beyond the terms of the credit agreement.
Risks and Contingencies: The debt is secured by specific aircraft assets. The facility includes a provision where individual aircraft may remain in the collateral pool for up to one year. The ability to draw funds is contingent upon the valuation of the collateral pool.
Investor Verification Checklist
- Verify the specific aircraft assets currently designated in the collateral pool to determine the actual available borrowing capacity.
- Review the company's most recent 10-K or 10-Q for existing debt levels to assess total leverage post-facility.
- Monitor LIBOR rate fluctuations to estimate future interest expense on this facility.
- Confirm whether the company has drawn any funds from the $56.0 million facility since inception.