Allegiant lands $350M loan for Florida resort project

Allegiant Air’s genitor institution has obtained a $350 cardinal indebtedness for its Florida edifice project, a task the hose suspended erstwhile the pandemic hit.

Las Vegas-based Allegiant Travel Co. announced Thursday that concern steadfast Castlelake provided a indebtedness to money operation of Sunseeker Resort Charlotte Harbor. The riverfront task is slated to diagnostic 500-plus edifice rooms, much than 180 extended-stay suites, 55,000 quadrate feet of league space, and 19 restaurants and bars.

According to a filing with the Securities and Exchange Commission, Allegiant tin get up to $350 cardinal from Castlelake, with $175 cardinal to beryllium precocious earlier the extremity of this period and the remainder issued successful 2 batches, scheduled for April and October of 2022.

The indebtedness was expected.

This summer, Allegiant Chairman and CEO Maurice “Maury” Gallagher told analysts the hose would resume construction of the resort, with Allegiant President John Redmond reporting the institution had reached a woody to get $350 cardinal for the project.

Allegiant — known for flying from small, underserved cities to warm-weather abrogation spots, usually without contention connected its routes — held a ceremonial groundbreaking for Sunseeker successful March 2019, astir 2½ years aft Redmond, a erstwhile casino executive, was named institution president.

The bearer besides obtained a $175 cardinal operation indebtedness successful March 2019 to money the archetypal signifier of Sunseeker.

However, Allegiant suspended construction of the edifice successful March 2020 amid the aboriginal chaos of the coronavirus outbreak, portion of its sweeping efforts to prevention currency arsenic the tourism industry, including successful Las Vegas, mostly crushed to a halt.

It besides came to an statement with its lender to terminate the archetypal loan.

Gallagher told analysts this summertime that Sunseeker is successful the mediate of “perhaps the champion leisure abrogation country successful the country” and is “easy driving distance” from 3 of Allegiant’s top-performing markets: St. Pete-Clearwater, Punta Gorda and Sarasota.

The bearer resumed operation of Sunseeker successful August.

Contact Eli Segall astatine esegall@reviewjournal.com oregon 702-383-0342. Follow @eli_segall connected Twitter.