UAL Corp., secures $3 billion bankruptcy exit loan

UAL Corp., secures $3 billion bankruptcy exit loan    UAL Corp., parent company of United Airlines, Monday secured a previously announced $3 billion loan with JPMorgan and Citigroup, to enable United’s exit from bankruptcy. The financing has a term of six years and was secured by substantially all available assets and comprises a $300 million revolving credit facility and an up to $2.7 billion term loan.
   “We have been pleased that our debtor-in-possession loan has been oversubscribed, and we look forward to successful syndication of our exit facility,” said Kathryn Mikells, United’s vice president and treasurer.
   New York-based investment rating service Standard & Poor’s, issued United’s exit finance package a “B+” rating and the highest possible recovery rating of 1 “Upon United’s and UAL’s emergence, Standard & Poor’s anticipates assigning its ‘B’ corporate credit rating to both companies. The expected rating outlook is stable,” Standard & Poor’s said.
   Moody’s rated United a Corporate Family Rating of B2 with a stable outlook. United’s exit financing facility received a Corporate Family Rating of B1 and a Speculative Grade Liquidity Risk Assessment rating of 2.
   A hearing to confirm United’s plan of reorganization is scheduled for Jan. 18, and UAL said it expects United Airlines to exit from bankruptcy on or about Feb. 1.