United Airlines has extended the borrowing capacity of its revolving credit facility (of up to $2.865bn) by $1.115bn. This may be drawn upon by United until February 15 2029 (in the case of revolving loans made by the extending lenders) and April 21 2025 (for the revolving loans made by the 2024 non-extending lenders). These commitments total $2.7bn and $165 million respectively.
As of February 22, the term loans under the existing term loan facility had an outstanding principal amount of $3.87bn. United used $1.37bn of available cash to partially prepay these, borrowing the entire term loan commitment under the term loan facility in an amount equal to $2.5bn and using the proceeds to prepay in full the remaining outstanding principal balance.
As detailed in the SEC filing, the term loan facility will be subject to amortization payments of 1.00% per year, payable quarterly, commencing on June 30 2024. The remaining balance of the term loans will be due and payable on its maturity date o February 22, 2031.
United Airlines extends borrowing capacity by over $1bn
