United Net a Small Sum for Its Parts.

Authors :: Denning, Liam
Source :: Wall Street Journal - Eastern Edition. 6/30/2009, Vol. 253 Issue 151, pC10. 0p. 1 Graph.
Publication Year :: 2009
Abstract: This article reports on the bond offering launched by UAL Corp., the parent company of United Airlines. UAL had priced on June 29, 2009 a $175 million new, three-year debt that is collateralized by spare parts. The bond offering carries a coupon of 12.75% and sold at about 10% discount to par. The bond offering also has a yield maturity of 17%. In contrast, US Airways Group has issued $60 million of new stock only to see its capitalization actually decline.