United Airlines Announces Launch of Senior Se
12-30-2009, 04:54 PM
#1
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United Airlines Announces Launch of Senior Se
Hopefully this is going to translate into 70+ seat aircraft (mainline of course)........ 
United Airlines Announces Launch of Senior Secured Notes Offering
Source: United Airlines 30/12/2009
United Airlines (“United”), a wholly-owned subsidiary of UAL Corporation (“UAL”) (Nasdaq: UAUA), announced today that it plans to offer, subject to market and other conditions, $500 million aggregate principal amount of senior secured notes due 2013. The notes will be the senior secured obligations of United. United’s obligations under the notes will be guaranteed on a senior unsecured basis by UAL and UAL’s subsidiaries that are guarantors or direct obligors under its senior secured credit facility. The notes will be secured by certain of United's routes, takeoff and landing slots and airport gate leaseholds utilized in connection with these routes. The collateral is currently encumbered under United’s senior secured credit facility but would be made available by substituting other collateral into the senior secured credit facility. United intends to use the net proceeds from the offering for general corporate purposes.
The notes will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in accordance with Regulation S under the Securities Act. The notes will not be registered under the Securities Act or state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
United Airlines Announces Launch of Senior Secured Notes Offering
Source: United Airlines 30/12/2009
United Airlines (“United”), a wholly-owned subsidiary of UAL Corporation (“UAL”) (Nasdaq: UAUA), announced today that it plans to offer, subject to market and other conditions, $500 million aggregate principal amount of senior secured notes due 2013. The notes will be the senior secured obligations of United. United’s obligations under the notes will be guaranteed on a senior unsecured basis by UAL and UAL’s subsidiaries that are guarantors or direct obligors under its senior secured credit facility. The notes will be secured by certain of United's routes, takeoff and landing slots and airport gate leaseholds utilized in connection with these routes. The collateral is currently encumbered under United’s senior secured credit facility but would be made available by substituting other collateral into the senior secured credit facility. United intends to use the net proceeds from the offering for general corporate purposes.
The notes will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in accordance with Regulation S under the Securities Act. The notes will not be registered under the Securities Act or state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
12-30-2009, 09:31 PM
#2
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Two Outcomes
I see two possibilities:
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
12-30-2009, 09:59 PM
#3
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or they are not making bills and trying to avoid another ch11, or trying to pay for these 787s/buses they ordered, or maybe buying some big ass RJS but i doubt that honestly, or getting money to back the idea of buying/merging with another airline
My Dad work for UAL and since 9/11 that airline has been a huge mistake after another, if it wasn't for the fact most major creditors gave them way too much money to mortgage everything they own, they would be out of business, but the idea of every major US lender losing about 3 billion each if they go CH 7, is all that keep them flying.
God honestly a flight on UAL goes like this, you go to a gate, that is leveraged by Chase, a 757 from EWR-SFO that is actually mortgaged to Citi and leased by GE capital, then you land and the United fuel truck that refuels is actually mortgaged to Bank of America credit, followed by the walk up the jetway/gate that is leased to USAA capital credit. All of which where owned by United in 1999, along with Hertz rent a car, and every single thing United put their logo on, except maybe a handful of J-41's that Skywest flew from places within 1 hour of a UAL hub.
My Dad work for UAL and since 9/11 that airline has been a huge mistake after another, if it wasn't for the fact most major creditors gave them way too much money to mortgage everything they own, they would be out of business, but the idea of every major US lender losing about 3 billion each if they go CH 7, is all that keep them flying.
God honestly a flight on UAL goes like this, you go to a gate, that is leveraged by Chase, a 757 from EWR-SFO that is actually mortgaged to Citi and leased by GE capital, then you land and the United fuel truck that refuels is actually mortgaged to Bank of America credit, followed by the walk up the jetway/gate that is leased to USAA capital credit. All of which where owned by United in 1999, along with Hertz rent a car, and every single thing United put their logo on, except maybe a handful of J-41's that Skywest flew from places within 1 hour of a UAL hub.
12-30-2009, 10:31 PM
#4
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Joined APC: Dec 2009
Posts: 111
Gents,
The wife and I are spending the holiday season with my buddy, who is a United pilot...... he wanted to respond to the above posting (without having to register) ...... so without further adieu ..... I give you "Toons"........
"Dear rickt86, war did yew larn to speech an rite da english language? Is yew a moron? What does yew dew when yew is tryin to fine a approach plate an yew gots to spell Dember. It's probly a good thing yew mays be abel to spell DEN."
And with that ladies and gentlemen, we wish you a happy New Year!
Aloha and his buddy "Toons"
The wife and I are spending the holiday season with my buddy, who is a United pilot...... he wanted to respond to the above posting (without having to register) ...... so without further adieu ..... I give you "Toons"........
"Dear rickt86, war did yew larn to speech an rite da english language? Is yew a moron? What does yew dew when yew is tryin to fine a approach plate an yew gots to spell Dember. It's probly a good thing yew mays be abel to spell DEN."
And with that ladies and gentlemen, we wish you a happy New Year!
Aloha and his buddy "Toons"
12-30-2009, 10:35 PM
#5
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Joined APC: Aug 2008
Position: forever fo
Posts: 2,413
Ya I am 23 and fresh out of college, some of us do not take web forums at 230am after a few 'sodas', while watching TV all that important, I type like I am typing into an instant messenger chat with a friend, your welcome to compare that with how I perform during the 9-5 but you will be sadly disappointed at your assumption
12-30-2009, 10:37 PM
#6
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Joined APC: Aug 2006
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Originally Posted by UAL T38 Phlyer
I see two possibilities:
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
12-30-2009, 10:51 PM
#7
Gets Weekends Off
Joined APC: Aug 2008
Position: forever fo
Posts: 2,413
I guess I will type how y'all want it, MY GUESSES TO THE OP ARE:
1. UAL is RUNNING OUT OF MONEY, and if they CAN NOT raise capital, will file CH 11 AGAIN
2.They need CAPITAL for the 787/airbuses they claim to be adding to the fleet over the next few years
3. and this one I like the most, they want capital for the mergers/buy outs that Tilton is obsessed with seeing all over the US airline industry, IE UAL wants to merge with CAL, and this will require some serious CASH ON HAND
BASICALLY, the only thing that has keep UAL in business since 2002 is the fact they mortgaged everything they owned, basically putting them XXbillion in debt, which MEANS, all those creditors have spent twice as much as they originally gave them in hopes they recover and pay it all back
ITS LIKE, someone on a blackjack table that loses $500, after betting $50 a hand, and instead of walking away, starts betting $100 a hand in hopes of winning back what they lost.....double or nothin
1. UAL is RUNNING OUT OF MONEY, and if they CAN NOT raise capital, will file CH 11 AGAIN
2.They need CAPITAL for the 787/airbuses they claim to be adding to the fleet over the next few years
3. and this one I like the most, they want capital for the mergers/buy outs that Tilton is obsessed with seeing all over the US airline industry, IE UAL wants to merge with CAL, and this will require some serious CASH ON HAND
BASICALLY, the only thing that has keep UAL in business since 2002 is the fact they mortgaged everything they owned, basically putting them XXbillion in debt, which MEANS, all those creditors have spent twice as much as they originally gave them in hopes they recover and pay it all back
ITS LIKE, someone on a blackjack table that loses $500, after betting $50 a hand, and instead of walking away, starts betting $100 a hand in hopes of winning back what they lost.....double or nothin
12-30-2009, 11:09 PM
#8
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Joined APC: Sep 2007
Position: 747 FO
Posts: 937
Originally Posted by Aloha
Gents,
The wife and I are spending the holiday season with my buddy, who is a United pilot...... he wanted to respond to the above posting (without having to register) ...... so without further adieu ..... I give you "Toons"........
"Dear rickt86, war did yew larn to speech an rite da english language? Is yew a moron? What does yew dew when yew is tryin to fine a approach plate an yew gots to spell Dember. It's probly a good thing yew mays be abel to spell DEN."
And with that ladies and gentlemen, we wish you a happy New Year!
Aloha and his buddy "Toons"
The wife and I are spending the holiday season with my buddy, who is a United pilot...... he wanted to respond to the above posting (without having to register) ...... so without further adieu ..... I give you "Toons"........
"Dear rickt86, war did yew larn to speech an rite da english language? Is yew a moron? What does yew dew when yew is tryin to fine a approach plate an yew gots to spell Dember. It's probly a good thing yew mays be abel to spell DEN."
And with that ladies and gentlemen, we wish you a happy New Year!
Aloha and his buddy "Toons"
12-30-2009, 11:27 PM
#9
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Joined APC: Mar 2008
Position: DAL Pilot
Posts: 1,133
Originally Posted by rickt86
...except maybe a handful of J-41's that Skywest flew from places within 1 hour of a UAL hub.
You mean E-120's...Very good post, by the way!
12-31-2009, 03:22 AM
#10
Gets Weekends Off
Joined APC: Oct 2006
Position: 737
Posts: 590
Originally Posted by UAL T38 Phlyer
I see two possibilities:
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
1. Using the money from this offer, United acquires 70-90 seat RJs to fill the void of the 737s and starts doing some "Mainline" RJ flying to actually serve smaller markets and grow the business. They make money, and are able to pay back the notes.
2. They blow the money and buy RJs for affiliated carriers, pay a "per departure" fee that actually makes it more expensive than Mainline, lose money, and start selling off routes, equipment, facilities, and shrinking the business.....
United became huge after profitting from Pan Am's blunder in a similar fashion. I hope it doesn't happen again, with UAL in the role of PAA.
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