Airline

United upsizes loyalty card-backed issuance to $6.8 billion

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United upsizes loyalty card-backed issuance to $6.8 billion

United Airlines has increased the size of its previously announced note issuance backed by the carrier’s loyalty card programme to $6.8 billion from $5 billion.

The private offering by Mileage Plus Holdings, a direct wholly-owned subsidiary of United that operates the MileagePlus program now consists of an aggregate of $3.8 billion in principal amount of 6.50% senior secured notes due 2027, expected to be issued on July 2 and a $3 billion term loan facility.

Goldman Sachs Lending Partners, Barclays Bank and Morgan Stanley Senior Funding  are arranging and syndicating the term loan facility, which is expected to close in July.