United parent to distribute an extra $2.15 per share to stockholders

By Lisa Kerner

Charlotte, N.C., Dec. 7 - United Airlines parent company UAL Corp. will give its stockholders a special distribution of $2.15 per share, or some $250 million, on Jan. 23, the company announced on Friday.

The record date for the distribution is Jan. 9, according to a company news release.

United also announced that it paid down $500 million of the term loan under its existing credit agreement.

The distribution and the term loan prepayment are part of United's amended credit agreement under which it is permitted to undertake an additional $250 million in shareholder initiatives without any additional prepayment.

"This shareholder distribution underscores our commitment to creating value for our investors," chairman, president and chief executive officer Glenn Tilton stated in the release. "On behalf of our board of directors, we are pleased to make this decision to provide a distribution to our shareholders while strengthening our balance sheet and investing in our business."

United said that since exiting bankruptcy, the Chicago-based airline has reduced its total net debt by $2.7 billion through the end of the third quarter and generated upwards of $2 billion in operating cash flow in the first nine months of the year.

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