ALK · Alaska Air Group, Inc.

Alaska Air Group, Inc. facilitated two significant financing transactions on May 12, 2026, enhancing its capital structure through unsecured and secured debt. First, subsidiary Alaska Airlines issued $500 million aggregate principal of 6.500% senior notes maturing June 1, 2031, under an indenture with U.S. Bank Trust Company. These notes are fully guaranteed by the parent company and rank pari passu with other senior debt, though effectively subordinated to secured obligations. Interest accrues at 6.500% per annum, paid semiannually, providing predictable fixed-rate funding. Early redemption flexibility exists before the December 1, 2030 par call date using a make-whole premium based on Treasury Rate plus 50 basis points, balancing issuer optionality with investor protection. A change-of-control provision mandates repurchase offers at 101% of principal, safeguarding noteholders against corporate events. Customary defaults, including immediate acceleration on bankruptcy, maintain standard creditor protections.

Concurrently, indirect subsidiary AS Mileage Plan IP Ltd. amended its October 2024 term loan agreement to add a $500 million incremental facility, secured by collateral tied to the Atmos Rewards loyalty program. This shares first-priority liens equally with the existing $750 million term loans and $1.25 billion loyalty notes (5.021% due 2029 and 5.308% due 2031). Variable pricing at Term SOFR plus 200 basis points reflects market conditions for secured loyalty-program-backed debt. These transactions collectively raise $1 billion, likely bolstering liquidity or refinancing needs, with loyalty collateral underscoring the strategic value of the customer loyalty program to creditors.