B6Busdriver
pushbutton pusher
- Joined
- Mar 1, 2003
- Posts
- 902
Press Release Source: United Airlines
UAL Secures $2 Billion in Exit Financing from JPMorgan and Citigroup
Tuesday December 16, 6:52 pm ET
Loan Backers Cite Major Restructuring Progress, Solid Business Plan; Banks to Provide $400 million in Non-Guaranteed Funding
Financing Contingent on Approval by ATSB, Bankruptcy Court
CHICAGO, Dec. 16 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, confirmed today that it has reached formal agreement to secure $2 billion in exit financing with JPMorgan and Citigroup, marking a major step toward emerging from Chapter 11 bankruptcy protection. Under the financing plan, JPMorgan and Citigroup will each underwrite $200 million of the non-guaranteed portion of the facility and $800 million of the guaranteed portion, which requires the backing of a loan guarantee from the Air Transportation Stabilization Board (ATSB). The Company plans to file an update to its previous proposal to the ATSB shortly. Financing is also subject to approval by the U.S. Bankruptcy Court.
ADVERTISEMENT
"The competitive terms of this financing package -- especially the willingness of both banks to include a substantial amount of at-risk funding -- reflect the extraordinary progress United has made this past year, and the credibility of our plan for the future," said Glenn F. Tilton, United's Chairman and Chief Executive Officer. "We are very pleased to be working with both banks, and look forward to moving ahead with them in the exit process and beyond."
"Obtaining exit financing commitments on a timely basis is a major step for United," said Jake Brace, United's executive vice president and chief financial officer. "JPMorgan and Citigroup, along with our other Debtor-in- Possession financing lenders, have gained a deep understanding of our business and the progress United has made on lowering costs, enhancing productivity and improving revenue, which led directly to these exit financing commitments."
"This is a vastly different company than it was a year ago, and we believe all the pieces are now in place to enable United to compete effectively," said Bill Repko, Managing Director, Head of Restructuring, JPMorgan. "United has done all the right things to position itself for a successful exit."
JPMorgan and Citigroup will serve as the joint lead arrangers and co- administrative agents for the loan. They will also be joint book runners with JPMorgan leading the syndication.
"We are extremely pleased to participate in providing financing that assists United to complete its restructuring," said Chad Leat, head of Global Loans and Leveraged Finance Capital Markets. "United has made a great deal of progress, and we look forward to continuing to work with them."
As part of its restructuring efforts, the company is on track to reduce its costs by $5 billion annually by 2005, has improved its revenue performance and has heightened operational results. UAL generated an operating profit of $19 million in the third quarter 2003, the first time it has shown an operating profit since the second quarter of 2000.
United and United Express operate more than 3,400 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.united.com .
Safe Harbor Statement. Certain information contained in this press release should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect UAL Corporation's current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties relating to the operations and business environments of UAL Corporation and its subsidiaries (collectively, the "company") that may cause the actual results of the company to differ materially from any future results expressed or implied in such forward-looking statements. Such factors include, but are not limited to, the following: the company's ability to continue as a going concern; the company's ability to operate pursuant to the terms of its debtor- in-possession facility; the company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the company's ability to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 process; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusive period for the company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; the cost and availability of financing; the company's ability to execute its business plan; the company's ability to attract, motivate and/or retain key employees; the company's ability to attract and retain customers; demand for transportation in the markets in which the company operates; general economic conditions; the effects of any hostilities or act of war or any terrorist attack; the ability of other air carriers with whom the company has alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the cost and availability of aircraft insurance; the cost of aviation fuel; the cost associated with security measures and practices; competitive pressures on pricing (particularly from lower-cost competitors); government legislation and regulation; and other risks and uncertainties set forth from time to time in UAL Corporation's reports to the United States Securities and Exchange Commission. Consequently, the forward-looking statements should not be regarded as representations or warranties by the company that such matters will be realized. The company disclaims any intent or obligation to update or alter any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.
Worldwide Communications:
Media Relations Office: 847.700.5538
Evenings/Weekends: 847.700.4088
UAL Secures $2 Billion in Exit Financing from JPMorgan and Citigroup
Tuesday December 16, 6:52 pm ET
Loan Backers Cite Major Restructuring Progress, Solid Business Plan; Banks to Provide $400 million in Non-Guaranteed Funding
Financing Contingent on Approval by ATSB, Bankruptcy Court
CHICAGO, Dec. 16 /PRNewswire-FirstCall/ -- UAL Corporation (OTC Bulletin Board: UALAQ - News), the holding company whose primary subsidiary is United Airlines, confirmed today that it has reached formal agreement to secure $2 billion in exit financing with JPMorgan and Citigroup, marking a major step toward emerging from Chapter 11 bankruptcy protection. Under the financing plan, JPMorgan and Citigroup will each underwrite $200 million of the non-guaranteed portion of the facility and $800 million of the guaranteed portion, which requires the backing of a loan guarantee from the Air Transportation Stabilization Board (ATSB). The Company plans to file an update to its previous proposal to the ATSB shortly. Financing is also subject to approval by the U.S. Bankruptcy Court.
ADVERTISEMENT
"The competitive terms of this financing package -- especially the willingness of both banks to include a substantial amount of at-risk funding -- reflect the extraordinary progress United has made this past year, and the credibility of our plan for the future," said Glenn F. Tilton, United's Chairman and Chief Executive Officer. "We are very pleased to be working with both banks, and look forward to moving ahead with them in the exit process and beyond."
"Obtaining exit financing commitments on a timely basis is a major step for United," said Jake Brace, United's executive vice president and chief financial officer. "JPMorgan and Citigroup, along with our other Debtor-in- Possession financing lenders, have gained a deep understanding of our business and the progress United has made on lowering costs, enhancing productivity and improving revenue, which led directly to these exit financing commitments."
"This is a vastly different company than it was a year ago, and we believe all the pieces are now in place to enable United to compete effectively," said Bill Repko, Managing Director, Head of Restructuring, JPMorgan. "United has done all the right things to position itself for a successful exit."
JPMorgan and Citigroup will serve as the joint lead arrangers and co- administrative agents for the loan. They will also be joint book runners with JPMorgan leading the syndication.
"We are extremely pleased to participate in providing financing that assists United to complete its restructuring," said Chad Leat, head of Global Loans and Leveraged Finance Capital Markets. "United has made a great deal of progress, and we look forward to continuing to work with them."
As part of its restructuring efforts, the company is on track to reduce its costs by $5 billion annually by 2005, has improved its revenue performance and has heightened operational results. UAL generated an operating profit of $19 million in the third quarter 2003, the first time it has shown an operating profit since the second quarter of 2000.
United and United Express operate more than 3,400 flights a day on a route network that spans the globe. News releases and other information about United may be found at the company's website at www.united.com .
Safe Harbor Statement. Certain information contained in this press release should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect UAL Corporation's current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties relating to the operations and business environments of UAL Corporation and its subsidiaries (collectively, the "company") that may cause the actual results of the company to differ materially from any future results expressed or implied in such forward-looking statements. Such factors include, but are not limited to, the following: the company's ability to continue as a going concern; the company's ability to operate pursuant to the terms of its debtor- in-possession facility; the company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the company's ability to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 process; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusive period for the company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; the cost and availability of financing; the company's ability to execute its business plan; the company's ability to attract, motivate and/or retain key employees; the company's ability to attract and retain customers; demand for transportation in the markets in which the company operates; general economic conditions; the effects of any hostilities or act of war or any terrorist attack; the ability of other air carriers with whom the company has alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the cost and availability of aircraft insurance; the cost of aviation fuel; the cost associated with security measures and practices; competitive pressures on pricing (particularly from lower-cost competitors); government legislation and regulation; and other risks and uncertainties set forth from time to time in UAL Corporation's reports to the United States Securities and Exchange Commission. Consequently, the forward-looking statements should not be regarded as representations or warranties by the company that such matters will be realized. The company disclaims any intent or obligation to update or alter any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.
Worldwide Communications:
Media Relations Office: 847.700.5538
Evenings/Weekends: 847.700.4088
