United Airlines, Inc. has announced it has completed a private offering of USD 3.8 billion in principal amount of 6.50% senior secured notes due 2027 by MileagePlus, the company said.
Mileage Plus Holdings, LLC is a direct wholly-owned subsidiary of United that operates the MileagePlus program, and Mileage Plus Intellectual Property Assets, Ltd., an indirect wholly-owned subsidiary of MPH.
Concurrently with the issuance of the notes, the MileagePlus Subsidiaries entered into a credit agreement providing for a term loan facility in an aggregate amount of USD 3.0 billion. Borrowings under the Term Loan Facility will bear interest at a variable rate equal to LIBOR (but not less than 1.0% per annum) plus 5.25% per annum. The MileagePlus Subsidiaries intend to loan the net proceeds from the offering of the Notes and borrowings under the Term Loan Facility to United, after depositing a portion of such proceeds in reserve accounts for the Notes and the Term Loan Facility.