CHICAGO, Oct. 1 /PRNewswire-FirstCall/ -- UAL Corporation (Nasdaq: UAUA),
the holding company whose primary subsidiary is United Airlines, today
announced financing transactions that will add approximately $275 million of
cash prior to year end.
The company has completed a $125 million aircraft financing agreement,
receiving approximately $60 million yesterday, and will receive the remaining
approximately $65 million by mid October.
United has also executed agreements and agreements in principle (subject
to reaching final documentation and other conditions) to sell certain assets
for approximately $140 million. The company received approximately $30 million
from these assets in the third quarter and expects to receive approximately
$110 million in the fourth quarter. In addition, United intends to substitute
certain cash collateral with a letter of credit, generating $10 million in net
incremental cash in the fourth quarter.
"We are further strengthening our cash position, and we are pleased to
close this transaction, particularly in this market environment," said Kathryn
Mikells, who will become chief financial officer on November 1. "We still have
over $3 billion of unencumbered assets to further enhance our liquidity."
About United
United Airlines (NASDAQ: UAUA) operates more than 3,200* flights a day on
United and United Express to more than 200 U.S. domestic and international
destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and
Washington, D.C. With key global air rights in the Asia-Pacific region, Europe
and Latin America, United is one of the largest international carriers based
in the United States. United also is a founding member of Star Alliance, which
provides connections for our customers to 975 destinations in 162 countries
worldwide. United's 55,000 employees reside in every U.S. state and in many
countries around the world. News releases and other information about United
can be found at the company's Web site at united.com.
*Based on the flight schedule between Jan. 1, 2008 and Dec. 31, 2008.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Certain statements included in this investor update are
forward-looking and thus reflect the company's current expectations and
beliefs with respect to certain current and future events and financial
performance. Such forward-looking statements are and will be subject to many
risks and uncertainties relating to the operations and business environment of
the company that may cause actual results to differ materially from any future
results expressed or implied in such forward-looking statements. Factors that
could significantly affect net earnings, revenues, expenses, costs, load
factor and capacity include, without limitation, the following: the company's
ability to comply with the terms of its credit facility; the costs and
availability of financing; the company's ability to execute its business plan;
the company's ability to realize benefits from its resource optimization
efforts and cost reduction initiatives; the company's ability to use its net
operating losses; the company's ability to attract, motivate and/or retain key
employees; the company's ability to attract and retain customers; demand for
transportation in the markets in which the company operates; general economic
conditions (including interest rates, foreign currency exchange rates, crude
oil prices and energy refining capacity in relevant markets); the effects of
any hostilities or act of war or any terrorist attack; the ability of other
air carriers with whom the company has alliances or partnerships to provide
the services contemplated by the respective arrangements with such carriers;
the costs and availability of aircraft insurance; the costs of jet fuel; our
ability to cost-effectively hedge against increases in the price of jet fuel;
the costs associated with security measures and practices; labor costs;
industry consolidation; competitive pressures on pricing and on demand;
capacity decisions of United and/or our competitors; U.S. or foreign
governmental legislation, regulation and other actions, including open skies
agreements; the ability of the company to maintain satisfactory labor
relations and our ability to avoid any disruptions to operations due to any
potential actions by our labor groups; weather conditions; and other risks and
uncertainties set forth from time to time in UAL's reports to the United
States Securities and Exchange Commission. Consequently, the forward-looking
statements should not be regarded as representations or warranties by the
company that such matters will be realized. The company disclaims any intent
or obligation to update or revise any of the forward-looking statements,
whether in response to new information, unforeseen events, changed
circumstances or otherwise.
SOURCE UAL Corporation
