United Airlines to Raise $3 Billion Secured by Frequent-Flyer Program and Other Assets

By Kurt Stolz on 23 June 2020
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United Airlines said that its two Mileage Plus-related subsidiaries will commence a private offering in the aggregate amount of $3 billion of senior secured notes due in 2027.

The funds will help the airline weather the downturn in travel precipitated by the coronavirus pandemic.

The nation’s second biggest carrier had said it requires additional funds “as the airline navigates the most disruptive financial crisis in the history of aviation,” it said in a statement earlier in the month.

The two subsidiaries are Mileage Plus Holdings, a wholly owned subsidiary of the airline that operates the MileagePlus frequent-flyer program, and Mileage Plus Intellectual Property Assets, an indirect wholly-owned subsidiary of Mileage Plus Holdings.

The private offering is subject to market and other conditions.

The notes will be guaranteed by the two subsidiaries as well as United Airlines, its parent United Airlines Holdings, and certain subsidiaries of the airline.

(Photo: Accura Media Group)

Accura News

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