By Paul A. Harris
St. Louis, June 20 - United Air Lines, Inc. priced $208.571 million of high-yield rated series 2007-1 pass through certificates on Tuesday, according to a prospectus filed by the company.
The Chicago-based passenger air carrier priced $106.835 million of 12-year class B certificates (Ba2/BB-) at par to yield 7.336%.
UAL also priced $101.736 million of seven-year class C floating-rate certificates (B1/B) at par to yield six-month Libor plus 225 basis points.
The also placed $485.086 million of 6.636% 15-year class A certificates (Baa2/BBB), making the combined transaction size $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.
| Issuer: | United Air Lines, Inc.
|
| Overall amount: | $693.657 million (including $485.086 million high grade tranche)
|
| High yield amount: | $208.571 million via Rule 144A
|
| Securities: | Series 2007-1 pass through certificates
|
| Bookrunners: | Morgan Stanley, Credit Suisse
|
| Trade date: | June 19
|
| Settlement date: | June 26
|
|
|
| Class B certificates
|
| Amount: | $106.835 million
|
| Maturity: | July 2, 2019
|
| Coupon: | 7.336%
|
| Price: | Par
|
| Yield: | 7.336%
|
| Call features: | Make-whole at Treasuries plus 30 bps until July 2, 2009, then callable at a premium
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
|
|
| Class C certificates
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| Amount: | $101.736 million
|
| Maturity: | July 2, 2014
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| Coupon: | Six-month Libor plus 225 bps
|
| Price: | Par
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| Yield: | Six-month Libor plus 225 bps
|
| First call date: | July 2, 2009
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
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