United Airlines has announced it is raising funds through its MileagePlus program to improve liquidity, the company said.
United previously announced it would draw a USD 5 billion line of credit using the MileagePlus program as collateral, monetizing user data. Under their next fundraising round, the Chicago-based carrier will offer senior secured notes through their subsidiaries Mileage Plus Holdings, LLC, and Mileage Plus Intellectual Property Assets, Ltd.
The private sale will be offered to eligible purchasers identified by the airline. The notes will come due in 2027, and will be guaranteed by the MileagePlus subsidiaries and United Airlines Holdings.
United said it plans to have USD 17 billion in available liquidity by September 2020. In addition to the fundraising rounds, the airline is preparing to take the full USD 4.5 billion in loans from the CARES Act. Despite this, the airline expects to burn an average of USD 40 million daily through the second quarter of 2020.