UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 7, 2017
Allegiant Travel Company
_______________________________________________
(Exact name of registrant as specified in its charter)
Nevada | 001-33166 | 20-4745737 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1201 N. Town Center Drive, Las Vegas, NV | 89144 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (702) 851-7300
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Section 2 Financial Information
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
of a Registrant.
On June 7, 2017, Allegiant Travel Company (the “Company”), through a wholly owned subsidiary, borrowed $34 million under a loan agreement secured by one newly manufactured Airbus A320 aircraft. The note bears interest at a floating rate based on LIBOR and will be payable in quarterly installments through June 2027. The proceeds from the loan were used to pay the remaining purchase price for the aircraft with the balance to be used for general corporate purposes.
Through a wholly-owned subsidiary, the Company executed lease agreements on June 13, 2017, through Alafco Aviation Lease and Finance Company K.S.C.P. for seven additional Airbus A320 aircraft, increasing the total number of aircraft subject to the Alafco leases to 13. Each lease is for the benefit of the particular owner for such aircraft. These seven aircraft are expected to be delivered to the Company between July 2018 and December 2018 and the six aircraft subject to the leases signed previously are expected to be delivered between September 2017 and December 2017. Each lease has a 12-year term and includes a purchase option which can be exercised by the Company beginning 96 months after the delivery date. Upon delivery, the leases will be recorded as finance leases on the Company’s financial statements. It is expected that the Company will record a total of approximately $335.5 million to $344.5 million as fixed assets and as obligations under finance leases upon delivery of all 13 of the aircraft which are the subject of these leases.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 13, 2017 | ALLEGIANT TRAVEL COMPANY | ||
By: | /s/ Scott Sheldon | ||
Name: | Scott Sheldon | ||
Title: | Chief Financial Officer | ||