Allegiant Travel Co.'s Proposed Term Loan B Rated 'BB-' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Jan. 10, 2019--S&P Global Ratings today assigned 
its 'BB-' issue-level rating and '3' recovery rating to Allegiant Travel Co.'s 
proposed $450 million senior secured term loan B due 2024. The '3' recovery 
rating indicates our expectation for meaningful recovery (50%-70%; rounded 
estimate: 65%) in the event of a payment default.  

The company will use the proceeds to repay its $450 million senior unsecured 
notes due 2019. The loan is secured on a first lien basis by assets of the 
borrower and restricted subsidiaries other than aircraft and spare engines. 
The loan is guaranteed by Allegiant Travel Co. subsidiaries other than 
Sunseeker Resorts Inc. Because the collateral excludes aircraft and aircraft 
engines, we feel the term loan is nominally secured and treat it effectively 
as an unsecured loan.    

Our ratings on Allegiant Travel Co. take into account its relatively small 
market share in the U.S. airline industry, the high risk and cyclical nature 
of the airline industry, and the company's low operating cost structure. 
Allegiant is also undertaking the Sunseeker resort hotel/condo project in Port 
Charlotte, Fla. We view this project as adding financial risk due to the 
additional debt it requires.
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