United Airlines Slaps 11% Yield on Struggling Junk Bond Sale
- Yield hiked on $2.25 billion debt sale from about 9% initially
- Company adds terms to protect investors in event of bankruptcy
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United Airlines Holdings Inc. is sweetening the yield on a $2.25 billion junk-bond sale after investors expressed concerns about the aging fleet pledged as collateral, according to people familiar with the matter.
The airline is offering a yield of 11%, which was increased from initial discussions in the low 9% range for the deal, said the people, who asked not to be identified discussing a private transaction. The changes come after the three and five-year bonds had only received about $1.5 billion of orders as of Thursday morning, the people added.