United Airlines has engaged Barclays Capital as lead arranger of its planned $3.5 billion credit facility, sources indicate.
JP Morgan is the administrative agent, they say. Some of the lenders from the Chicago-based carrier's 2013 facility that the new debt refinances are expected to participate.
Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley and Opus Bank were lenders of original $1.9 billion facility that United closed in March 2013.
The term loan and revolving credit facility were upsized to $2.74 billion in 2014.
United is planning a new $1.5 billion senior secured term loan due in 2024, a $2 billion secured revolver due in April 2022 and a $500 million letter of credit sub-facility under the revolver, Moody’s Investors Service said in a report on 15 March.
Proceeds would refinance the $1.06 billion outstanding under the 2013 facility and replace the undrawn $1.35 billion revolver.
The new facility is secured by United’s route authorities, gates and slots at its US international gateways, Beijing, Hong Kong, London Heathrow, Osaka, Shanghai, Tokyo Haneda and Tokyo Narita, as well as its domestic slots at New York LaGuardia and Washington National, Moody’s says.
The rating agency rates the planned debt Baa3.
Source: Cirium Dashboard
