UAL $3 billion exit facility expected as early 2006 business

By Sara Rosenberg

New York, Oct. 24 - UAL Corp. is expected to launch its $3 billion six-year exit financing credit facility in early 2006, according to market sources. JPMorgan and Citigroup are the joint lead arrangers on the deal.

The facility will carry an interest rate of Libor plus 450 basis points, and there will be minimal amortization.

Proceeds will be used to repay the company's debtor-in-possession facility, to make other required payments and to ensure strong cash balances to conduct post-reorganization operations.

The Elk Grove Township, Ill., airline anticipates exiting from Chapter 11 in February 2006.

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