UAL requests 13th DIP amendment, adding $320 million term loan to fund EETC purchase

By Caroline Salls

Pittsburgh, Aug. 8 - UAL Corp. requested emergency approval of its 13th amendment to its $1.3 billion debtor-in-possession facility that adds a tranche C to the DIP to allow the company to refinance its class A certificates under its 1997-I Enhanced Equipment Trust Certificates transaction, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The DIP lender is JPMorgan Chase Bank.

The tranche C term loan would be for up to $320 million, secured by 10 UAL-owned aircraft. If the company obtains the title to all 14 aircraft securing the transaction's outstanding debt by the time the amendment is approved, the tranche C loan will be for up to $350 million.

The company is also seeking approval to pay up to $6.58 million in amendment fees.

According to the filing, UAL has already purchased the class A and class B certificates under the EETC transaction and wants to act quickly to purchase the class C certificates and gain a controlling interest in the transaction.

The company said in the filing that it is seeking outside financing for the purchase so its cash can continue to be used for other purposes.

A hearing on the amendment is scheduled for Aug. 18. UAL will hold a lender call Thursday to discuss the amendment.

The Chicago-based parent of United Airlines filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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