Alaska Air announces proposed Mileage Plan financing
Written by Emily J. Thompson, Senior Investment Analyst
Alaska Air Financing Announcement: Alaska Air has proposed a $1.5 billion senior secured term loan facility, with the borrower being AS Mileage Plan IP Ltd., a subsidiary based in the Cayman Islands. The financing will be guaranteed by Alaska Airlines and secured by collateral from its Mileage Plan loyalty program.
Use of Proceeds: The funds from this financing will be used to establish reserve and collection accounts, facilitate an intercompany loan to Alaska for redeeming certain debts from its merger with Hawaiian Airlines, and support general corporate liquidity needs.
Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALK is 70.22 USD with a low forecast of 58.00 USD and a high forecast of 94.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 49.660
Low
58.00
Averages
70.22
High
94.00
Current: 49.660
Low
58.00
Averages
70.22
High
94.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing jet aircraft for passengers and cargo. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus jet aircraft for passengers and cargo. The Regional segment includes Horizon's and other third-party carriers’ scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
