Moody's assigns United’s facility, notes Ba1

Moody's Investors Service said it gave Ba1 ratings to United Airlines, Inc.'s new credit facility and senior secured notes. Parent, United Airlines Holdings, Inc., will guarantee the new debt.

United’s international route authorities issued by the U.S. Department of Transportation, all of its landing and take-off slots at foreign and domestic airports, including New York's JFK and LaGuardia and Ronald Reagan Washington National Airport and rights to use or occupy the space used for flight operations at airport terminals will secure the debt.

The credit facility will include a $1.75 billion revolving credit commitment expiring in 2025 and a term loan B due in 2028.

United will use the proceeds for general corporate purposes, including the repayment of the $1.4 billion outstanding on the term loan it arranged in March 2017, the $1 billion outstanding on the revolver that will be retired in this refinancing and the $520 million drawn on the Cares Act secured loan from the treasury.

United will also terminate the secured loan commitment from the treasury.

The Ba2 corporate family rating and negative outlook of United Airlines Holdings, Inc. and its subsidiaries including United Airlines, Inc. are unaffected by these ratings assignments, Moody’s said.

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