United refinances bankruptcy loan

United refinances bankruptcy loan United Airlines has paid off $972 million of its original $3 billion bankruptcy exit facility in cash, and refinanced the remaining $2 billion, which the airline said will result in a net pre-tax savings of about $70 million per annum.
   The new facility was arranged by J.P. Morgan Securities Inc. and Citigroup Global Markets as joint lead arrangers and Credit Suisse Securities (USA) LLC as syndication agent, and comprises a $1.8 billion term loan and a $255 million revolving credit line.
   United said the primary collateral for the new facility includes intangible assets such as routes, airport gates and slots. The refinancing enables the airline to remove 101 aircraft and the company's spare parts inventory, valued at about $2.5 billion, from the collateral pool, United said.
   Under terms of the facility, United could still use those assets as security for new financing 'if needed.'
   Jake Brace, United's executive vice president and chief financial officer, said: 'Restructuring our exit facility to a lower rate reflects our improved financial condition and the market's confidence in United.'