United Airlines' Proposed $2 Billion Revolving Credit Facility And $1.5 Billion Term Loan Rated 'BB+' (Recovery: '1')

NEW YORK (S&P Global Ratings) March 14, 2017--S&P Global Ratings today assigned its 'BB+' issue-level rating and '1' recovery rating to United Airlines Inc.'s proposed $2 billion revolving credit facility and $1.5 billion term loan. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. The credit facilities are an amendment and upsizing of United Airlines' existing credit facilities and are guaranteed by its parent, United Continental Holdings Inc. The credit facilities are secured by United's international route rights to China (Beijing and Shanghai), Hong Kong, Japan, and London's Heathrow International Airport. The collateral pool also includes takeoff and landing slots at various airports in the related countries

...NEW YORK (S&P Global Ratings) March 14, 2017--S&P Global Ratings today assigned its '##+' issue-level rating and '1' recovery rating to United Airlines Inc.'s proposed $2 billion revolving credit facility and $1.5 billion term loan. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. The credit facilities are an amendment and upsizing of United Airlines' existing credit facilities and are guaranteed by its parent, United Continental Holdings Inc. The credit facilities are secured by United's international route rights to China (Beijing and Shanghai), Hong Kong, Japan, and London's Heathrow International Airport. The collateral pool also includes takeoff and landing slots at various airports in the related countries and at Washington's Reagan Airport and New York's La Guardia Airport. We have reviewed the appraisals of these assets, which are valued--in the case of international route rights--on a discounted...

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