United Airlines Announces Launch of Senior Secured Notes Offering

Dec 30, 2009, 13:09 ET from United Airlines

CHICAGO, Dec. 30 /PRNewswire-FirstCall/ -- 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.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of United or UAL and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About United

United, a wholly-owned subsidiary of UAL Corporation (NASDAQ: UAUA), operates approximately 3,300* flights a day on United and United Express to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to approximately 1,100 destinations in 175 countries worldwide. United's 47,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com.

* Based on United's forward-looking flight schedule for October 2009 to October 2010.

SOURCE United Airlines