UAL launches loan amendment to waive fixed-charge coverage covenant

By Sara Rosenberg

New York, May 5 - UAL Corp. held a lender call on Monday to launch an amendment to its credit facility that would waive the fixed-charge coverage ratio for one year, according to a market source.

Also under the amendment, the company would need to hold unrestricted cash of $1 billion, up from $750 million, the source said.

JPMorgan is the lead bank on the deal.

Lenders are being offered a 700 bps fee if they get their consents to the amendment in on Monday and a 500 bps fee is they consent on Tuesday.

UAL is a Chicago-based provider of air transportation services.

© 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.