Originally Posted by
Toddnel
In the interest of accuracy, at the time of the merger UAL had $5.480 billion in long term debt financed at fixed interest rates of 6.64% to 12%.
CAL had a bit more at $5.609 billion but lower average interest rates of 4.75% to 9.25%.
I'm hoping they paid off the 9.25% and 12% first regardless of whose debt it was.
CAL was a much smaller airline and UALs Assets were far greater, so the debt was larger even more as a percentage of assets.