United Airlines enters note purchase agreement for USD3bn series A equipment note

United Airlines entered (03-Nov-2020) a note purchase agreement with Wilmington Trust, pursuant to which it issued pass through trust 2020-1A, a series A equipment note in the aggregate principal amount of USD3 billion. The equipment note is initially secured by substantially all of United's aircraft spare parts from time to time, as well as by a group of 99 spare engines and 352 aircraft owned by United. The equipment note was purchased on the issuance date at a purchase price of 100% of the principal amount, whereby United used the proceeds to repay USD2 billion aggregate principal amount outstanding under a term loan facility entered into on 09-Mar-2020, USD500 million aggregate principal amount outstanding under a term loan facility entered into on 20-Mar-2020 and USD250 million aggregate principal amount outstanding under a term loan facility entered into on 07-Apr-2020. Remaining proceeds will be used to pay fees and expenses related to the offering of the certificates and for general corporate purposes. The equipment note bears interest at 5.875% p/a, and is payable quarterly from 15-Jan-2021 to 15-Oct-2027. [more - original PR]