UAL Corporation announces public offering of common stock and convertible senior notes
30-Sep-2009 UAL Corporation (Nasdaq: UAUA), the holding company whose primary subsidiary is United Air Lines Inc., announced today that it plans to offer, subject to market and other conditions, 19 million shares of its common stock in an underwritten registered public offering. In connection with this offering, the company intends to grant the underwriters an over-allotment option with respect to an additional 2.85 million shares of its common stock.
The company also plans to offer, subject to market and other conditions, $175 million aggregate principal amount of convertible senior notes due 2029 in a concurrent underwritten registered public offering. In connection with this offering, the company intends to grant the underwriters an over-allotment option with respect to an additional $26.25 million aggregate principal amount of convertible senior notes.
Neither the completion of the convertible senior notes offering nor the completion of the common stock offering will be contingent on the completion of the other. The company intends to use the net proceeds from both offerings for general corporate purposes.
J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. will act as joint book-running managers of both offerings.