By Andrea Heisinger
New York, Oct. 6 - United Air Lines, Inc. priced $659.107 million of 10.4% split-rated pass-through certificates due 2016 at par, according to an FWP filing with the Securities and Exchange Commission.
The certificates (Ba1/BBB) priced to yield 10.4%. They have a make-whole redemption at Treasuries plus 75 bps.
J.P. Morgan Securities and Morgan Stanley were bookrunners. Co-manager was Goldman Sachs & Co.
The deal is guaranteed by UAL Corp.
Proceeds will be held in escrow for the pass-through trust to use to acquire equipment notes. They will be used to finance 16 Airbus and 15 Boeing aircraft owned by United.
UAL, the holding company for airline subsidiary United, is based in Chicago.
| Issuer: | United Air Lines, Inc.
|
| Issue: | Pass-through certificates
|
| Amount: | $659.107 million
|
| Distribution date: | Nov. 1, 2016
|
| Bookrunners: | J.P. Morgan Securities, Morgan Stanley
|
| Co-manager: | Goldman Sachs & Co.
|
| Coupon: | 10.4%
|
| Price: | Par
|
| Yield: | 10.4%
|
| Call: | Make-whole at Treasuries plus 75 bps
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 13
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB
|
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