By Paul A. Harris
Portland, Ore., Sept. 27 – United Continental Holdings, Inc. priced a $400 million issue of five-year senior bullet notes (Ba3/BB-) at par to yield 4¼% in a quick-to-market transaction on Wednesday, according to market sources.
The yield printed at the tight end of yield talk in the 4 3/8% area.
The notes are guaranteed by operating subsidiary United Airlines, Inc.
Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
The Chicago-based airline plans to use the proceeds for general corporate purposes.
| Issuer: | United Continental Holdings, Inc.
|
| Guarantor: | United Airlines Inc.
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Co-manager: | Loop Capital Markets LLC
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 232 bps over Treasuries
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 27
|
| Settlement date: | Sept. 29
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 4 3/8% area
|
| Marketing: | Quick to market
|
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