United announces $3 billion exit financing facility

By: | at 07:00 PM | Air Cargo  

UAL Corporation, the holding company whose primary subsidiary is United Airlines, announced the launch of its exit financing loan for up to $3 billion. The six-year loan will be secured by substantially all available assets and comprised of a $300 million revolving credit facility and an up to $2.7 billion term loan, both priced at LIBOR + 450 basis points. Proceeds will be used for several purposes: to repay outstanding loans under United’s debtor-in-possession financing; certain bankruptcy-related expenses; working capital; and other general corporate purposes.

The financing is led by JPMorgan and Citigroup. GE Capital will act as syndication agent.

‘We have been pleased that our debtor-in-possession loan has been oversubscribed, and we look forward to successful syndication of our exit facility,’ said Kathryn Mikells, United vice president and treasurer. A hearing to confirm United’s plan of reorganization is scheduled for Jan. 18, and the company is planning to exit bankruptcy on or about Feb. 1.


Be the first to comment on this article!

To avoid Spammers, we ask that you log in using your AJOT.com account. Free accounts have access to commenting.

Did you forget your password?

It happens...