United Airlines may ask for credit revision: report
NEW YORK (Reuters) - UAL's (UAUA.O) United Airlines is mulling asking its banks to rejig the terms of its credit facility in an effort to get crucial financial flexibility, the Financial Times reported on Monday.
The carrier may approach its lenders, Citigroup (C.N), JPMorgan Chase (JPM.N) and Credit Suisse (CSGN.VX), as early as Monday to request concessions on its financing arrangements, the FT said, citing people close to the situation.
The ability of airlines to comply with bank covenant and loan agreements has already been reported to be a near-term concern. Northwest NWA.N has asked lenders in its $1.2 billion bank loan to do away with fixed-charge coverage ratios for the next 12 months, according to Reuters Loan Pricing Corp.
As of March 31, United had a cash balance of $2.9 billion and a coverage ratio of 1.5.
United representatives were not available immediately for comment.
(Reporting by Aarthi Sivaraman; Editing by Quentin Bryar)
