United Airlines launches $3.5 billion term B at Libor plus 450 bps

By Sara Rosenberg

New York, April 12 – United Airlines Inc. was scheduled to hold a lender call at noon ET on Monday to launch a $3.5 billion seven-year senior secured term loan B that is talked at Libor plus 450 basis points with a 0.75% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan is non-callable for one year, then at 102 in year two, the source said.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and Credit Agricole are the lead arrangers on the deal.

Commitments are due at noon ET on Thursday, the source added.

The company also plans to get a $1.75 billion senior secured revolving credit facility due 2025.

Proceeds will be used with $5.5 billion of senior secured notes to repay in full a $1.4 billion term loan entered into on March 29, 2017, $1 billion of revolver borrowings and $520 million outstanding under the CARES Act term loan, for general corporate purposes and to pay fees and expenses relating to the notes offering.

United Airlines is a Chicago-based airline company.

© 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.