United Airlines is looking for financing for 10 new aircraft deliveries that are scheduled for the second half of the year.
The aircraft are split between nine Boeing 737-900ERs and one Boeing 787-8, according to a stock exchange filing on 25 July.
Four deliveries during the period already have financing. Two 737s and a 787 are covered by Chicago-based United's $843.9 million 2012-2 secured enhanced equipment trust certificate (EETC) and one 737 is financed with bank debt.
The carrier anticipates between $590 million and $610 million in gross capital expenditures during the third quarter, says John Rainey, chief financial officer of United, during an earnings call on 25 July.
Debt and capital lease payments are expected to be about $500 million during the quarter, he adds.
United ended June with $5.96 billion in cash, cash equivalents and short-term investments, up 10.6% from the end of March. Cash fell 22.6% from the end of June 2012.
Long-term debt and capital lease obligations were flat at $10.94 billion during the three months ending in June. Debt was down 0.5% compared to a year earlier.
United closed $300 million in unsecured senior notes due in 2018 with a 6.375% coupon in May. The debt was used to repay $49 million of its 8% notes due 2019.
The carrier made $540 million in debt and capital lease payments, including $144 million in aircraft prepayments, during the second quarter, says Rainey.
"A strong financial foundation reduces the risk in the business for our investors, increases the confidence our customers and coworkers have in our long-term success, and enables consistent investment in assets that generate appropriate returns," he says.
Source: Air Transport Intelligence news
