Originally Posted by
Aero1900
Sounds bad.....
what is worse is their credit ratings. Last bonds UA sold required an 11% coupon. AA was 11.75 but still sold below par, forcing them to pay an actual 12% for their money. As their existing debt is refinanced (and it will be because they don’t have the money to simply buy the bonds back as they mature) the debt service is going to skyrocket.