For the first quarter of 2021, United Airlines says that it expects to report total revenues of $3.2 billion, a decrease of (66%) versus the first quarter of 2019 and at the favourable end of previous guidance of a decrease of (65%) to (70%) versus the first quarter of 2019.
Average daily core cash flow (or core cash burn) for the first quarter of 2021 is expected to be approximately negative $9 million per day, an improvement of about $10 million per day compared to the negative average daily core cash flow (or core cash burn) reported for the fourth quarter of 2020.
United has also announced that it intends to commence a private offering to eligible purchasers of two series of notes worth $5.5 billion – senior secured notes due 2026 and senior secured notes due 2029. The notes will be guaranteed on an unsecured basis by UAL. United also announced it intends to enter into a new $3.5 billion senior secured term loan B facility due 2028 and a new $1.75 billion senior secured revolving credit facility due 2025 concurrently with the closing of the offering.
United intends to use the net proceeds to repay in full the $1.4 billion outstanding under the term loan facility United entered into on March 29, 2017, the $1.0 billion aggregate principal amount outstanding under the revolving credit facility United entered into on March 29, 2017 and the $520 million aggregate principal amount outstanding under the CARES Act term loan facility United entered into on September 28, 2020.