United Airlines shrank its unsecured bond issue to $300 million ahead of pricing yesterday.
The seven-year senior unsecured debt priced with an all-in rate of 5% at a spread of 281bps over benchmark treasuries, a stock exchange filing shows. Proceeds will be used for general corporate purposes.
United loped $200 million off of the proposed transaction between launch and pricing on 23 January.
The Chicago-based carrier was not immediately available to comment on the transaction.
Fitch Ratings rates the issue BB, saying the additional debt does not alter its estimate of a mid-3x debt-to-EBITDAR leverage ratio.
Bank of America Merrill Lynch, JP Morgan, Barclays Capital and Deutsche Bank Securities are joint bookrunning managers.
The transaction will settle on 26 January.
Source: Cirium Dashboard