Who owns UAL's debt?
07-07-2020, 12:19 PM
#1
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Who owns UAL's debt?
Any ideas on the amounts and time frame of UAL's debt? The reason I ask is that I'm wondering about time frame to get to a reasonable debt position before growth might occur. The debt numbers were something that I could factor in to estimate how long the furloughs were going to run over the 2001 and 2008 times and turned out to be a fair predictor for recalls for my own planning.
07-07-2020, 12:42 PM
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07-07-2020, 01:00 PM
#3
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This
That said, the latest filing (July 2) shows the most recently issued debt is due in 2027.
https://ir.united.com/static-files/e...8-528ef87f3b50
07-07-2020, 02:47 PM
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^ ^ ^
This
That said, the latest filing (July 2) shows the most recently issued debt is due in 2027.
https://ir.united.com/static-files/e...8-528ef87f3b50
This
That said, the latest filing (July 2) shows the most recently issued debt is due in 2027.
https://ir.united.com/static-files/e...8-528ef87f3b50
07-07-2020, 04:39 PM
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07-07-2020, 05:03 PM
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07-08-2020, 05:20 AM
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07-08-2020, 06:44 AM
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Who owns the debt is vague at best...Most large loans 100+million and up are held by numerous institutions as any one institution can't carry the risk.
Term and interest rate are probably best considered together. Interest rate in excess of the risk free rate, represents the markets view of how risky any investment is. The current RFR is 0.69% so, the market sees a fair amount of risk with United. Right now UA is getting junk bond or worse interest rates on debt, which shows serious concern with long term viability.
Term is important, because UA would like to buy out the loans at some point. Companies normally do this by rolling over the principle into a new loan at a lower interest rate. Hopefully UA will be in a position to do this.
Term and interest rate are probably best considered together. Interest rate in excess of the risk free rate, represents the markets view of how risky any investment is. The current RFR is 0.69% so, the market sees a fair amount of risk with United. Right now UA is getting junk bond or worse interest rates on debt, which shows serious concern with long term viability.
Term is important, because UA would like to buy out the loans at some point. Companies normally do this by rolling over the principle into a new loan at a lower interest rate. Hopefully UA will be in a position to do this.
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