United Airlines proposes USD 2.25bn in senior secured notes offering

United Airlines, Inc. has announced it plans to commence a USD 2.25 bn private offering to eligible purchasers of two series of notes, senior secured notes due 2023 and senior secured notes due 2025, the company said.

The notes will be guaranteed by United´s parent company United Airlines Holdings, Inc.

United intends to use the net proceeds from the offering of the notes to repay the USD 2.0 billion aggregate principal amount outstanding under the term loan facility that United entered into on March 9, 2020 and, to the extent that any net proceeds remain, for general corporate purposes.

The notes will be secured initially by first priority security interests in a designated pool of 360 aircraft owned by United.