Moody’s assigns MileagePlus loan, notes Baa3

Moody’s Investors Service said it assigned Baa3 senior secured ratings to the new loan and notes of Mileage Plus Holdings, LLC.

MPH plans to arrange a $2 billion senior secured term loan due in 2027 and sell $3 billion of senior secured notes due in 2027.

MPH will loan the proceeds from these financings to United Airlines, Inc. via an intercompany loan. Mileage Plus Intellectual Property Assets Ltd., a direct subsidiary of MPH, will be a co-borrower and co-issuer under the term loan and notes, respectively.

United Airlines Holdings, Inc. and United Airlines will each guarantee the loan and notes. MPH’s subsidiaries and certain of United’s other unrestricted subsidiaries will also guarantee the debt.

The outlook on MPH’s secured debt is stable.

The agency’s ratings for United, including the Ba2 corporate family rating and negative outlook, are currently unaffected by its subsidiary MPH’s debt-raising plans, Moody’s said.

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