LAS
VEGAS, Oct. 3, 2023 /PRNewswire/ -- Today
Allegiant Travel Company (NASDAQ: ALGT) announced financing
commitments for seven Airbus A320 and four Boeing 737 MAX aircraft
from BNP Paribas, Europe's leading
bank, and Jackson Square Aviation (JSA), a leading global
commercial aircraft lessor.
The innovative $412M deal combines
banking and lessor capital to secure Allegiant's aircraft financing
needs into the second quarter 2024, while providing the airline
with healthy liquidity at an attractive cost in today's market.
"We are delighted with BNP Paribas and Jackson Square's creativity in providing what we
believe is an efficient framework that affords us robust liquidity
to support foundational investments in our fleet. This transaction
taps into young A320 CEO aircraft and will also serve as the
inaugural financing for our Boeing 737 MAX equipment," said
Robert Neal, Allegiant's senior vice
president and chief financial officer.
Allegiant has drawn down $196
million on September 29, and
the remainder will be drawn commensurate with its initial 737 MAX
deliveries.
"Our relationship with BNP Paribas, spanning more than a
decade, has been instrumental in our growth as an ultra-low-cost
leader. We are thrilled to welcome Jackson Square Aviation as a new
partner as we make air travel more affordable and accessible to
leisure travelers," added Neal.
"We are delighted to provide Allegiant, a long-standing client
of the bank, an innovative and first-of-its-kind financing solution
which combines bank and lessor capital into one transaction. This
transaction allows the airline to maximize value while having more
structural flexibility to manage its aircraft fleet versus the more
traditional aircraft financing alternatives," said Ankush
Chowdhury, managing director & head of transportation banking
and capital markets at BNP Paribas. "BNP Paribas is honored to
partner with Jackson Square Aviation as we continue to innovate in
the world of aviation finance with the goal of providing efficient
and thoughtful financing solutions to our aviation clients," added
Chowdhury.
"It's a great pleasure to have Allegiant as a new airline
customer for Jackson Square Aviation and we're pleased to be
working together with a long-standing banking partner, BNP
Paribas," said Chris Dailey,
president & chief commercial officer of JSA. "Combining the
strengths of JSA and BNP Paribas, we're able to provide an
efficient financing solution for Allegiant's fleet of in-service
Airbus A320s and next generation Boeing 737-8-200s, which we're
also excited to introduce as a first into our portfolio," said
Dailey.
Allegiant currently operates an all-Airbus fleet comprised of
127 Airbus A319s and A320s.
Allegiant has agreed to purchase up to 130 Boeing 737-7 and
737-8-200 models in a multi-year deal, Boeing's first with an
ultra-low-cost carrier in the United
States. The new 737 MAX additions will afford the airline
flexibility, environmental benefits, and new customer features.
Allegiant – Together We Fly™
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people,
places and experiences that matter most. Since
1999, Allegiant Air has linked travelers in
small-to-medium cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant serves communities across the nation, with
base airfares less than half the cost of the average domestic
roundtrip ticket. For more information, visit us at Allegiant.com.
Media information, including photos, is available
at http://gofly.us/iiFa303wrtF
Media Contact
Phone: 702-800-2020
Email: mediarelations@allegiantair.com
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SOURCE Allegiant Travel Company