SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: January 29, 1996 (Date of earliest event reported) UAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-6033 36-2675207 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 1200 Algonquin Road, Elk Grove Township, Illinois 60007 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (708) 952-4000 Not Applicable (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS. UAL Corporation (the "Company") is filing herewith a press release issued today by the Company as Exhibit 99.1 which is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. Exhibit No. Description 99.1 Press Release SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UAL CORPORATION By: /s/ Douglas A. Hacker Name: Douglas A. Hacker Title: Senior Vice President - Finance Dated: January 24, 1996 EXHIBIT INDEX Exhibit Number Description 99.1 Press Release
Exhibit 99.1 Corporate Communications Contacts: Connie Huff (847) 952-5501 Tony Molinaro (847) 952-4971 Night/Weekend (847) 952-4088 Investor Relations Contact: Mark Reiser (847) 952-7501 UAL CORPORATION COMPLETES MORE THAN $2.6 BILLION IN CREDIT IMPROVEMENT INITIATIVES SINCE EMPLOYEE OWNERSHIP CHICAGO, Jan 29, 1996 -- UAL Corporation, parent company of United Airlines, continues in its effort to strengthen its balance sheet and improve its debt rating with the implementation of more than $2.6 billion in debt retirement and credit improvement initiatives since employees became majority owners. Cost reduction achievements in the fourth quarter of 1995 included completion of a program to retire all of its outstanding Japanese yen- denominated deferred purchase certificates. UAL Corporation (UAL) also has terminated operating leases for 39 aircraft related to the deferred purchase certificates. These actions reduce the company's previously disclosed minimum lease payment obligations over the next three years by a total of $426 million. In addition, during the fourth quarter of 1995, the company repurchased approximately $179 million of additional debt securities and approximately $96 million of preferred stock. During the 18 months from the employee ownership transaction on July 12, 1994, through year-end 1995, UAL has completed the following credit improvement initiatives: - $426 million Termination of operating lease on, and subsequent acquisition of 39 aircraft - $195 million Prepayment of deferred purchase certificates (principal amount) - $327 million Repurchase of unsecured debt (principal amount) - $190 million Repurchase of Series B preferred stock (liquidation preference) - $426 million Prepayment of aircraft mortgages (principal amount) - $269 million Repayment of outstanding commercial paper - $777 million Pension plan finding ____________ - $2.610 billion Total UAL also is weighing the possibility of redeeming its 6 3/8 percent convertible subordinated debentures on or after May 1, 1996, as part of its debt-reduction program. The decision to redeem the debentures will depend on financial markets and other conditions, including the last sale price of its common stock exceeding $172.20 for 20 trading days within a period of 30 consecutive trading days, including the last trading day. On January 26, 1996, the last sale price of UAL common stock was $156 5/8. Should UAL redeem such debentures prior to May 1, 1997, holders would receive $1,043.75 in cash for every $1,000 in principal amount of debentures redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date. If UAL issues a notice of redemption, holders may still convert their debentures through the business day preceding the redemption date. Upon conversion, holders will receive $541.90 in cash and approximately 3.192 shares of common stock for every $1,000 principal amount of debentures. If the redemption date is on or after an interest payment date and prior to the next interest payment record date, holders who convert will not be entitled to any interest on the debentures.