UAL sets Monday launch for $3 billion exit facility

By Sara Rosenberg

New York, Jan. 4 - UAL Corp. has firmed up timing on its $3 billion six-year exit financing credit facility as a bank meeting has been scheduled for Monday to launch it into syndication, according to a market source.

Previously, it was expected that the deal would be early-2006 business, but specific timing had been unavailable.

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, according to a company release put out in October.

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 carrier anticipates exiting from Chapter 11 in February.

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