The parent company of United Airlines UAL has joined most of the US major carriers in creating liquidity deals this month to shore-up their balance sheets.
American' parent AMR, Delta and US Airways have all detailed various issuances of stock and debt to raise liquidity. US low cost carrier AirTran Airways has also recently completed liquidity-producing transactions.
Now UAL explains it intends to offer 19 million shares of its common stock, with an overallotment of 2.85 million shares to the underwriters of the transaction.
Additionally, UAL plans to offer, subject to market and other conditions, $175 aggregate in principle senior convertible notes due in 2029. The overallotment option for the underwriters on this transaction is $26.3 million in aggregate of the convertible notes.
UAL explains that neither transaction is contingent on completion of the other. JP Morgan, Morgan Stanley and Goldman Sachs are the joint book-running managers of both offerings.