United Air Lines announces $208.6 million junk-rated pass-through certificates

By Paul A. Harris

St. Louis, June 19 - United Air Lines, Inc. (UAL) announced in a prospectus filed Tuesday with the Securities and Exchange Commission that it intends to place $208.571 million of high-yield rated series 2007-1 pass-through certificates.

The Chicago-based passenger air carrier announced $106.835 million of class B certificates due July 2, 2019 (Ba2/BB-) and $101.736 million of class C floating-rate certificates due July 2, 2014 (B1/B).

UAL also announced $485.086 million of class A certificates due July 2, 2022 (Baa2/BBB).

The combined transaction size is $693.657 million.

Morgan Stanley and Credit Suisse are bookrunners.

Proceeds will be used to refinance the existing debt on certain aircraft and for general corporate purposes.

The two high-yield rated tranches will be distributed according to the provisions of Rule 144A.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.