UAL pays down loan & lowers interest rate

767jetz

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Aug 20, 2002
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Most significantly is that is removes 101 aircraft and spare parts from the collateral pool. This provides the company with the ability to raise more capital if it is needed.

767jetz
 
According to United's press release, this action will also reduce the carrier's annual interest expense by about $70 million.

And in a leap of pure speculation, I wonder if the lowered interest rate obtained through this refinancing will start the process of United finally ordering some new aircraft, presumably beginning with a B787 order. After all, this refinancing just proved that United can attract new money at reasonable interest rates, the carrier now has available collateral for new loans, and there is a lot of cash out there looking for a good place to go. But like I said, this is pure speculation on my part -- we'll just have to wait and see what happens in the coming months.
 
And in a leap of pure speculation, I wonder if the lowered interest rate obtained through this refinancing will start the process of United finally ordering some new aircraft, presumably beginning with a B787 order.

I LIKE IT!!! :up:

Speculate on, brother!
 
This all started before UA filed BK. It went something like this.....


If UA owed the banks $100,000 and there was a default, UA was in trouble. However, if UA owed the banks 7, 8, or 10 Billion, and there was a problem servicing the loan then the Banks were in trouble.

That's kind of where were at today. The creditors have so much money tied up in UA that they have to keep lending it money. So, if Tilton needs to secure money for a merger or new aircraft, it will be like going to the ATM.
 
This all started before UA filed BK. It went something like this.....
If UA owed the banks $100,000 and there was a default, UA was in trouble. However, if UA owed the banks 7, 8, or 10 Billion, and there was a problem servicing the loan then the Banks were in trouble.

That's kind of where were at today. The creditors have so much money tied up in UA that they have to keep lending it money. So, if Tilton needs to secure money for a merger or new aircraft, it will be like going to the ATM.


Bad analogy. You obviously have no clue what you're talking about.