United Airlines plans $500M in notes due 2013

AP News
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Posted: Dec 30, 2009 2:38 PM

United Airlines said Wednesday that it would offer $500 million in senior secured notes due in 2013.

United said the notes would be secured by some of its routes, takeoff and landing slots, and airport gate leases. That same collateral already secures United's senior secured credit facility, but the airline said it plans to substitute different collateral for that debt.

United said it will use the proceeds from the new notes for general corporate purposes.

United said the notes would be guaranteed on a senior unsecured basis by its corporate parent, UAL Corp.

United shares fell 3 cents to $12.64 in afternoon trading.