Key Developments For UAL Corporation
UAL Corporation (UAUA.O) (Nasdaq)
UAL Corporation Introduces New Summer Service To Rome
UAL Corporation announced that United Airlines is offering to begin daily seasonal service between Chicago and the Italian capital on May 1, 2010. The once daily flight will operate through the peak summer travel season, ending on Aug. 31, 2010.
UAL Corporation's United Airlines Prices $810 Million Aircraft Financing
United Airlines, a whollyowned subsidiary of UAL Corporation announced that it has priced its public offering of $810 million aggregate principal amount of enhanced equipment trust certificates (EETC). The $810 million financing is comprised of $697 million of Class A certificates with an interest rate of 9.75% and a final expected distribution date of Jan. 15, 2017 and $113 million of Class B certificates with an interest rate of 12.0% and a final expected distribution date of January 15, 2016. United intends to use the net proceeds to repay at par all of the $493 million aggregate principal amount of the equipment notes related to its outstanding 2000-2 EETC, and will use the approximately $290 million of remaining net proceeds, after accounting for all transaction-related fees and expenses, for general corporate purposes. As a result of this transaction, principal payment obligations will be reduced in 2010 by approximately $225 million and in 2011 by approximately $175 million. J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. are acting as joint book-running managers for the offering with Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. acting as a co-managers, for the offering.
ExpressJet Holdings, Inc. Shares Surge On Partnership With UAL Corporation's United Airlines-Reuters
Reuters reported that shares of ExpressJet Holdings, Inc. surged boosted by the announcement of a new partnership with UAL Corporation's United Airlines and an upswing in the broader stock market. United said in a statement that ExpressJet will operate 22 ERJ-145 aircraft under the United Express banner. The flying will begin May 2010 and will replace work previously done by other carriers.
U.S. Regulators Propose $9.2 Million In Fines Against US Airways Group, Inc. And UAL Corporation's United Airlines-Reuters
Reuters reported that U.S. regulators proposed $9.2 million in combined safety-related fines against US Airways Group, Inc. and UAL Corporation's United Airlines, which was cited for leaving towels inside a jet engine for several months. The Federal Aviation Administration (FAA) proposed a $5.4 million penalty against US Airways for operating eight planes while out of compliance with certain safety directives or its own maintenance programs. The FAA proposed to fine United $3.8 million for allegedly violating airworthiness rules when it flew a Boeing 737 on more than 200 flights. The agency alleged United violated its own maintenance procedures on engine work. Fines can be reduced in settlement talks, an option available to both airlines.
UAL Corporation's United Airlines Prices $659 Million Aircraft Financing
United Airlines, a wholly owned subsidiary of UAL Corporation, announced that it has priced its public offering of enhanced equipment trust certificates (EETC), to refinance an existing EETC facility that covers a number of the airline's aircraft. The $659 million financing has an interest rate of 10.40% and a final expected distribution date of November 1, 2016. United intends to use the net proceeds to repay at par all of the $568 million aggregate principal amount related to its outstanding 2001-1 EETC, and will use the approximately $90 million of remaining net proceeds, after accounting for all transaction related fees and expenses, for general corporate purposes. As a result of this transaction, principal payment obligations will be reduced in 2010 by approximately $215 million and in 2011 by approximately $100 million. J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated are acting as joint book-running managers, with Goldman, Sachs & Co. acting as a co-manager, for the offering.
