United Airlines has announced the completion of the $3.8 billion senior secured note offering, backed by its loyalty card programme Mileage Plus, priced at 6.5% plus a $3 billion term loan.
The private offering by Mileage Plus Holdings, a direct wholly-owned subsidiary of United that operates the MileagePlus program, and Mileage Plus Intellectual Property, an indirect wholly-owned subsidiary of MPH of an aggregate of $3.8 billion in principal amount of 6.50% senior secured notes due 2027 was completed yesterday.
Concurrently with the issuance of the Notes, the MileagePlus Subsidiaries entered into a credit agreement providing for a term loan facility of $3 billion.
Borrowings under the term loan facility will bear interest at a variable rate equal to LIBOR plus 5.25% per annum. The MileagePlus subsidiaries intend to loan the net proceeds from the offering of the Notes and borrowings under the term loan facility to United.