UAL runs with NASDAQ

25th Jan 2006

UAL Corporation has selected The NASDAQ Stock Market to list its new stock issue, which will trade under the ticker symbol “UAUA” beginning in early February.The company also announced that it had received an overwhelmingly positive
response to the syndication of its $3 billion exit financing facility, led by
JPMorgan Chase and Citigroup Global Markets.
  “We are very pleased with our selection of NASDAQ for the listing of our
new UAL shares,” said Glenn F. Tilton, chairman, president and CEO.  “United
has made fundamental and sustainable improvements in our operations, cost
structure and revenue strategy.  We are already competing successfully with
the other leading carriers, and will strengthen that position through
continuing operational improvements and differentiation based on customer
needs in the marketplace.”
  “The tremendous response to our exit financing from the lenders’ syndicate
attests to what United and our people are accomplishing,” said Tilton. “As we
look to our future as a publicly traded company, we concluded that NASDAQ,
with its cadre of dynamic companies, state-of the-art electronic trading
platform and focus on first-rate customer service, was a natural fit for us.”
  “United is one of the world’s premier brands and is repositioned as a
leader in its industry,” said Robert Greifeld, NASDAQ president and CEO.
“NASDAQ is the home of category-defining companies across all industries and
we are delighted that United has decided to join our market.  We look forward
to serving United and its investors with our superior trading experience.”
  The company expects to exit bankruptcy formally and begin trading in early
February, following the U.S. Bankruptcy Court’s approval of its Plan of
Reorganization last week.
  Separately, United announced that it received offers of subscription for
more than twice the capital necessary to support the $3 billion in exit
financing that it sought, which consists of a $2.8 billion term loan and a
$200 million revolving credit line. Because of this response, terms of the
financing improved to reduce the financing cost of the facility by 75 basis
points to 375 basis points over the London interbank offered rate (LIBOR).
  “Response to syndication of our exit facility is yet another validation of
the substantial and sustainable improvements made during our restructuring,”
said Jake Brace, executive vice president and chief financial officer.
  James B. Lee, vice chairman of JPMorgan Chase, said, “As it completes the
restructuring, United has proven itself to be attractive to a wide range of
institutional lenders. This is the largest exit financing ever raised in the
loan market and is well oversubscribed, a strong sign of lender confidence.”
  Under its Plan of Reorganization, UAL Corporation will begin to issue up
to 125 million shares of common stock in early February.  Most shares will go
to the company’s former unsecured creditors.


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