News Column

ALLEGIANT TRAVEL CO FILES (8-K) Disclosing Completion of Acquisition or Disposition of Assets, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

June 27, 2014



Item 2.01 Completion of Acquisition or Disposition of Assets.

Allegiant Travel Company (the "Company") previously reported that wholly-owned subsidiaries have entered into separate agreements to acquire the ownership interests in twelve special purpose companies, each owning one Airbus A320 series aircraft currently on lease to a European carrier until 2018 (the "SPC Aircraft Acquisitions") and that title to five of these companies transferred to the Company on June 18, 2014. Each contract to purchase the equity interest in these special purpose companies is with the particular owner or ownership group for such company. Neither the Company nor any of its affiliates had any material relationship with any of the sellers or special purpose companies prior to these transactions. All of these transactions were arranged through KGAL GmbH and Co. KG.

The purchase price for all of these special purpose companies is approximately $236.1 million of which approximately $142.0 million was effected by assumption of debt secured by the aircraft. During the week of June 23, 2014, the Company closed the purchase of the remaining seven of these special purpose companies representing a total purchase price of $138.6 million including the assumption of $83.6 million of debt secured by the seven aircraft owned by these entities.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

During the week of June 23, 2014, the Company closed the purchase of seven of the special purpose companies described in Item 2.01 above and in connection therewith, assumed $83.6 million of debt secured by the seven aircraft owned by these entities. All of the debt bears interest at a floating rate based on LIBOR and is payable in installments through the lease term of each individual aircraft owned by each special purpose company. The debt matures at expiry of the leases in 2018, at which time balloon payments are due and are subject to a mandatory prepayment in the event of a loss of the aircraft. The assumed debt is secured by the Airbus A320 series aircraft owned by that company.

--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters