Hijacked thread, but thought the kool-air slurpers should read. Remember, MANAGEMENT'S RESPONSIBILITY IS TO THE SHAREHOLDER - THAT IS IT.
And no matter what warm, fuzzy, yummy feeling they give you - nothing will ever change that.
UAL Corp. Announces $250 Million Distribution to Shareholders
Friday December 7, 90 am ET United Airlines Pays Down $500 Million of Term Loan Amendment to United's Credit Agreement Allows For Further Shareholder Initiatives
CHICAGO, Dec. 7 /PRNewswire-FirstCall/ -- United Airlines (Nasdaq: UAUA - News) today announced that the UAL Corporation Board of Directors approved a special distribution of $2.15 per share to holders of UAL common stock, or approximately $250 million. The distribution will be made on Jan. 23, 2008 to holders of UAL Corporation common stock on Jan. 9, 2008. United also announced that it paid down $500 million of the term loan under its existing credit agreement.
Both the distribution and the term loan prepayment follow the approval by United's lenders of an amendment to the company's credit agreement. Under the amendment, the company can undertake an additional $250 million in shareholder initiatives without any additional prepayment. In addition, the amendment provides that the company can carry out further shareholder initiatives in an amount equal to future term loan prepayments.
"This shareholder distribution underscores our commitment to creating value for our investors," said Glenn Tilton, chairman, president and CEO. "On behalf of our board of directors, we are pleased to make this decision to provide a distribution to our shareholders while strengthening our balance sheet and investing in our business. We compete for shareholders just as we compete for customers."
Since exiting bankruptcy, United has reduced its total net debt by $2.7 billion through the end of the third quarter. United has generated more than $2 billion in operating cash flow in the first nine months of the year. The company also plans to invest $4 billion in its business over the next five years. For the 5% Senior Convertible Notes due 2021 (the "O'Hare Notes"), the 4.5% Senior Limited-Subordination Convertible Notes due 2021 (the "Employee Notes") and the PBGC 2% Convertible Preferred Stock ("PBGC Preferred Stock"), the conversion price and the ratios will be adjusted in accordance with their respective terms."
And no matter what warm, fuzzy, yummy feeling they give you - nothing will ever change that.
UAL Corp. Announces $250 Million Distribution to Shareholders
Friday December 7, 90 am ET United Airlines Pays Down $500 Million of Term Loan Amendment to United's Credit Agreement Allows For Further Shareholder Initiatives
CHICAGO, Dec. 7 /PRNewswire-FirstCall/ -- United Airlines (Nasdaq: UAUA - News) today announced that the UAL Corporation Board of Directors approved a special distribution of $2.15 per share to holders of UAL common stock, or approximately $250 million. The distribution will be made on Jan. 23, 2008 to holders of UAL Corporation common stock on Jan. 9, 2008. United also announced that it paid down $500 million of the term loan under its existing credit agreement.
Both the distribution and the term loan prepayment follow the approval by United's lenders of an amendment to the company's credit agreement. Under the amendment, the company can undertake an additional $250 million in shareholder initiatives without any additional prepayment. In addition, the amendment provides that the company can carry out further shareholder initiatives in an amount equal to future term loan prepayments.
"This shareholder distribution underscores our commitment to creating value for our investors," said Glenn Tilton, chairman, president and CEO. "On behalf of our board of directors, we are pleased to make this decision to provide a distribution to our shareholders while strengthening our balance sheet and investing in our business. We compete for shareholders just as we compete for customers."
Since exiting bankruptcy, United has reduced its total net debt by $2.7 billion through the end of the third quarter. United has generated more than $2 billion in operating cash flow in the first nine months of the year. The company also plans to invest $4 billion in its business over the next five years. For the 5% Senior Convertible Notes due 2021 (the "O'Hare Notes"), the 4.5% Senior Limited-Subordination Convertible Notes due 2021 (the "Employee Notes") and the PBGC 2% Convertible Preferred Stock ("PBGC Preferred Stock"), the conversion price and the ratios will be adjusted in accordance with their respective terms."
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