United Continental Holdings has closed a $1.9 billion refinancing of existing term loan facilities.
The amortising debt is split between a $900 million term loan refinancing and a $1 billion revolving credit facility. The new term loan has a six-year tenor and the credit facility a five-year tenor, with both priced at 300bp over Libor. It closed on 27 March.
The term loan partially repays the outstanding principle of a $1.19 billion term loan that matures in February 2014. The balance will be repaid with cash. The debt was priced at 200bp over Libor.
The credit facility replaces a $500 million revolver that closed in December 2011.
Gerry Laderman, senior vice-president of finance and treasurer at Chicago-based United, told Flightglobal earlier in March that the refinancing is a continuation of the airline's programme to deleverage and pay down debt.
United anticipates that it will make $1.3 billion in debt and capital lease payments this quarter, according to an investor update on 28 March. This includes the refinancing as well as a $400 million prepayment of its 9.875% senior secured notes and a $200 million prepayment of its 12% senior second lien notes in February.
The airline had $11.2 billion in long-term debt and capital leases at the end of 2012. This was down 1.8% from $11.4 billion a year earlier.