By Andrea Heisinger
New York, Nov. 17 - United Air Lines, Inc. sold $810.34 million in split-rated class A and B pass-through certificates, according to an FWP filing with the Securities and Exchange Commission.
The sale was done off the high-grade syndicate desk.
A $697,731,000 issue of 9.75% class A certificates (Ba1/BBB) due 2017 priced at par to yield 9.75%. They have a make-whole spread of 75 bps over Treasuries.
The junk-rated $112,606,000 of 12% class B certificates (B1/BB) priced at par to yield 12%. They also have a make-whole spread of 75 bps.
The certificates are guaranteed by UAL Corp.
J.P. Morgan Securities Inc., Morgan Stanley & Co. and Goldman Sachs & Co. were joint bookrunners.
Co-managers are Citigroup Global Markets Inc., Credit Suisse Securities and Deutsche Bank Securities Inc.
Proceeds will be held in escrow to acquire equipment notes to buy aircraft.
The holding company for commercial airline United is based in Chicago.
Issuer: | United Air Lines, Inc.
|
Guarantor: | UAL Corp.
|
Issue: | Series 2009-2 pass-through certificates
|
Amount: | $810,337,000
|
Bookrunners: | J.P. Morgan Securities Inc., Morgan Stanley & Co., Goldman Sachs & Co.
|
Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc.
|
Trade date: | Nov. 16
|
Settlement date: | Nov. 24
|
|
Class A certificates
|
Amount: | $697,731,000
|
Issue: | Class A pass-through certificates
|
Maturity: | Jan. 15, 2017
|
Coupon: | 9.75%
|
Price: | Par
|
Yield: | 9.75%
|
Make-whole spread: | 75 bps
|
Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB
|
|
Class B certificates
|
Amount: | $112,606,000
|
Issue: | Class B pass-through certificates
|
Maturity: | Jan. 15, 2016
|
Coupon: | 12%
|
Price: | Par
|
Yield: | 12%
|
Make-whole spread: | 75 bps
|
Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
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