United Seeks Term Loan Amendment
eTN
United Airlines today announced that it is pursuing an amendment to its existing credit agreement.
The company is presenting the proposal to lenders today and expects a decision later next week. If approved, United will pay down $350 million of the term loan under the credit facility and will get the flexibility to implement up to $500 million of shareholder initiatives. Timing and form of any shareholder initiative ultimately will be determined by UAL's board of directors.
The amendment would also provide the company with flexibility for further shareholder initiatives by making additional term loan pre-payments.
In the 20 months following its restructuring, United has reduced its total net debt by $2.7 billion, including a $1.6 billion reduction of on and off balance sheet debt in the first three quarters of 2007. United has generated more than $2 billion in operating cash flow in the first nine months of the year.
