United Airlines prepares bid for US$659 million financing

United Airlines, a wholly-owned subsidiary of UAL Corporation, has priced its public offering of enhanced equipment trust certificates (EETC), to refinance an existing EETC facility that covers a number of the carrier's aircraft.

The US$659 million financing has an interest rate of 10.4 per cent and a final expected distribution date of November 1, 2016, the Shipping Gazette reports.
United said it intends to use the net proceeds to repay at par all of the $568 million aggregate principal amount related to its outstanding 2001-1 EETC, and will use the remaining $90 million of net proceeds for general corporate purposes.

"As a result of this transaction, principal payment obligations will be reduced in 2010 by approximately $215 million and in 2011 by approximately $100 million," the carrier said.

The offering will be made only by means of a prospectus supplement and related prospectus.

Source: Transportweekly