United Air Boosts Debt Sale 36% to $6.8 Billion on Demand Surge
- Bonds and loans are backed by frequent-flyer program
- Debt has investment grade ratings, while carrier ranked junk
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United Airlines Holdings Inc.’s second attempt to pull off a debt sale looks to have worked. The airline boosted the size of the offering on Thursday, with investors clamoring to get a piece of the debt backed by its frequent-flyer program.
The package was increased to $6.8 billion from $5 billion, and the yields are significantly lower than the double-digit ones offered on a $2.25 billion bond sale that the carrier nixed last month after it was unsatisfied with the terms.