United Airlines borrows $1 billion under revolving credit facility

By Sarah Lizee

Olympia, Wash., July 8 – United Airlines, Inc. borrowed $1 billion under its $2 billion revolving credit facility on July 2, according to an 8-K filing with the Securities and Exchange Commission.

The proceeds will be used for general corporate purposes.

The revolver is part of a credit agreement entered into on March 29, 2017 that also includes a $1.5 billion term loan. United had borrowed the full amount of the term loan on March 29, 2017.

The outstanding principal amount of the revolving loan must be repaid in full on April 1, 2022.

Before then, United may repay the revolving loan in whole at any time or in part from time to time at par and borrow under the revolver, subject to the terms of the 2017 credit agreement.

The company said it made the draw in order to comply with covenants under some of its financings.

Borrowings bear interest at Libor plus 225 basis points, subject to a 0% Libor floor.

United Airlines is a Chicago-based airline company.

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