Published on 9/13/2016 in the Prospect News Investment Grade Daily.
New Issue: United Airlines sells $919.59 million class AA and class A pass-through certificates
By Cristal Cody
Eureka Springs, Ark., Sept. 13 – United Airlines, Inc. sold $919,593,000 of series 2016-2 pass-through certificates in two parts on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The company priced $636,512,000 of 2.875% class AA certificates (Aa3//AA) at par.
United Airlines sold $283,081,000 of 3.1% class A certificates (A2//A) at par.
Both classes of certificates will have an average life of 9.1 years, an expected final distribution date of Oct. 7, 2028 and a final maturity of April 7, 2030.
Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. were the lead bookrunners. Additionally, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. were bookrunners.
Proceeds will be used to finance new aircraft.
The airline is based in Chicago.
| Issuer: | United Airlines, Inc.
|
| Amount: | $919,593,000
|
| Description: | 2016-2 pass-through certificates
|
| Lead bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co.
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc.
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 27
|
| Distribution: | SEC registered
|
|
|
| Class AA certificates
|
| Amount: | $636,512,000
|
| Maturity: | April 7, 2030
|
| Coupon: | 2.875%
|
| Price: | Par
|
| Yield: | 2.875%
|
| Make-whole call: | Treasuries plus 20 bps
|
| Ratings: | Moody’s: Aa3
|
| Fitch: AA
|
|
|
| Class A certificates
|
| Amount: | $283,081,000
|
| Maturity: | April 7, 2030
|
| Coupon: | 3.1%
|
| Price: | Par
|
| Yield: | 3.1%
|
| Make-whole call: | Treasuries plus 25 bps
|
| Ratings: | Moody’s: A2
|
| Fitch: A
|
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