Wednesday, October 2, 2024 Alaska Air Group, Inc. has announced the pricing for its previously disclosed private offering (the “Offering”). This includes (i) $625 million in 5.
021% Senior Secured Notes due 2029 and $625 million in 5.308% Senior Secured Notes due 2031 (the “Notes”), both issued by AS Mileage Plan IP, Ltd. (“Loyalty Issuer”), a limited liability company incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary of the Company, and (ii) a $750 million Senior Secured Term Loan B maturing in 2031 (the “Loyalty Term Loan Facility”).
Together, the Notes and the Term Loan Facility form the “Loyalty Financings.” The total Offering amount has been raised to $1.25 billion, up from the initial $750 million.
The Company anticipates completing the Loyalty Financings around October 15, 2024, subject to the fulfillment of customary conditions. Loyalty Issuer plans to allocate the net proceeds from the Offering, along with borrowings under the Loyalty Term Loan Facility, after accounting for fees and expenses payable by the Company, to (i) establish a reserve account for both the Notes and the Term Loan Facility, and (ii) fund a collection account. The funds in this collection account will be used to provide an intercompany loan to Alaska Airlines, Inc.
(“Alaska”) on the Offering’s closing date (the “Intercompany Loan”). Alaska intends to utilize the Intercompany Loan proceeds to (i) redeem or repay certain debts incurred or .