By Paul A. Harris
Portland, Ore., May 7 – United Continental Holdings, Inc. priced a $350 million issue of non-callable 4 7/8% 5.7-year senior notes (Ba3/BB) at 99.374 to yield 5% in a quick-to-market Tuesday trade, according to market sources.
The yield printed at the wide end of the 4 7/8% to 5% yield talk but on top of initial guidance in the 5% area.
Left lead bookrunner Barclays will bill and deliver. Joint bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
The notes feature a 101% poison put and covenants similar to those of the existing 4¼% senior notes due 2022 and 5% senior notes due 2024.
The Chicago-based airline plans to use the proceeds for general corporate purposes.
| Issuer: | United Continental Holdings, Inc.
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays (bill and deliver)
|
| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Coupon: | 4 7/8%
|
| Price: | 99.374
|
| Yield: | 5%
|
| Spread: | 270 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Trade date: | May 7
|
| Settlement date: | May 9
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | SEC registered
|
| Price talk: | 4 7/8% to 5%
|
| Marketing: | Quick to market
|
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