United Airlines Announces Launch of Syndication of $3 Billion Exit Financing Facilitytitle
CHICAGO, Jan. 9 /PRNewswire-FirstCall/ -- UAL Corporation
(OTC Bulletin Board: UALAQ), the holding company whose primary subsidiary is
United Airlines, announced today the launch of its exit financing loan for up
to $3 billion. The six-year loan will be secured by substantially all
available assets and comprised of a $300 million revolving credit facility and
an up to $2.7 billion term loan, both priced at LIBOR + 450 basis points.
Proceeds will be used for several purposes: to repay outstanding loans under
Uniteds debtor-in-possession financing; certain bankruptcy-related expenses;
working capital; and other general corporate purposes.
The financing is led by JPMorgan and Citigroup. GE Capital will act as
syndication agent.
"We have been pleased that our debtor-in-possession loan has been
oversubscribed, and we look forward to successful syndication of our exit
facility," said Kathryn Mikells, United vice president and treasurer.
A hearing to confirm Uniteds plan of reorganization is scheduled for Jan.
18, and the company is planning to exit bankruptcy on or about Feb. 1.
About United
United Airlines (OTC Bulletin Board: UALAQ) operates more than 3,400
flights a day on United, United Express and Ted to more than 200 U.S. domestic
and international destinations from its hubs in Los Angeles, San Francisco,
Denver, Chicago and Washington, D.C. With key global air rights in the Asia-
Pacific region, Europe and Latin America, United is one of the largest
international carriers based in the United States. United is also a founding
member of Star Alliance, which provides connections for our customers to 790
destinations in 138 countries worldwide. Uniteds 57,000 employees reside in
every U.S. state and in many countries around the world. News releases and
other information about United can be found at the companys Web site at
united.com.
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