United Airlines Reports New Material Agreements & Financial Obligations

TL;DR

**United Airlines just dropped an 8-K about new material agreements and financial obligations, so keep an eye on their balance sheet!**

AI Summary

United Airlines Holdings, Inc. filed an 8-K on February 22, 2024, reporting on a material definitive agreement and the creation of a direct financial obligation or an off-balance sheet arrangement. The filing, which covers the period as of February 15, 2024, indicates significant financial and contractual developments for the airline. This 8-K also includes financial statements and exhibits related to these new obligations.

Why It Matters

This filing signals new financial commitments and potentially strategic agreements for United Airlines, which could impact its future financial performance and operational strategy.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations and material agreements, the specifics of which are not detailed in the provided text, creating uncertainty about their potential impact.

Key Players & Entities

• United Airlines Holdings, Inc. (company) — Filer of the 8-K
• United Continental Holdings, Inc. (company) — Former name of United Airlines Holdings, Inc.
• UAL CORP /DE/ (company) — Former name of United Airlines Holdings, Inc.
• ALLEGIS CORP (company) — Former name of United Airlines Holdings, Inc.
• UNITED AIRLINES, INC. (company) — Related filer
• February 22, 2024 (date) — Filing date
• February 15, 2024 (date) — Conformed period of report

FAQ

Key Financial Figures

• $0.01 — Airlines Holdings, Inc. Common Stock, $0.01 par value UAL The Nasdaq Stock Market
• $2.865 b — eunder, the "Revolving Loans") of up to $2.865 billion, which increased the borrowing ca
• $1.115 b — e under the Existing Credit Facility by $1.115 billion, and may be drawn upon by United
• $2.7 billion — mitments of the Extending Lenders equal $2.7 billion and the revolving loan commitments of t
• $165 million — of the 2024 Non-Extending Lenders equal $165 million. United has not made any drawings under
• $3.87 billion — had an outstanding principal amount of $3.87 billion. On February 22, 2024, United (i) used
• $1.37 billion — ed available cash in an amount equal to $1.37 billion to partially prepay the term loans unde
• $2.5 billion — erm Loan Facility in an amount equal to $2.5 billion and used the proceeds of such term loan
• $11.0 billion — en Debt would exceed the greater of (x) $11.0 billion and (y) such an amount as would cause t

Filing Documents

• tm246340d1_8k.htm (8-K) — 55KB
• tm246340d1_ex10-1.htm (EX-10.1) — 1074KB
• tm246340d1_ex10-2.htm (EX-10.2) — 929KB
• 0001104659-24-026564.txt ( ) — 2702KB
• ual-20240215.xsd (EX-101.SCH) — 4KB
• ual-20240215_def.xml (EX-101.DEF) — 28KB
• ual-20240215_lab.xml (EX-101.LAB) — 37KB
• ual-20240215_pre.xml (EX-101.PRE) — 26KB
• tm246340d1_8k_htm.xml (XML) — 9KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On February 15, 2024, United Airlines Holdings, Inc. ("UAL") and United Airlines, Inc. ("United" and, together with UAL, the "Company," "we," "us" or "our") entered into an Amended and Restated Revolving Credit and Guaranty Agreement (the "Revolving Credit Facility"), among United, as borrower, UAL, as parent and guarantor, the subsidiaries of UAL other than United party thereto from time to time, as guarantors, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Wilmington Trust, National Association, as collateral trustee (the "Collateral Trustee"), which amends and restates in its entirety that certain Revolving Credit and Guaranty Agreement, dated as of April 21, 2021 (as in effect immediately prior to being amended by the Revolving Credit Facility, the "Existing Credit Facility"). On February 22, 2024, the Company also entered into Amendment No. 2 to Term Loan Credit and Guaranty Agreement (as amended, the "Term Loan Facility" and, together with the Revolving Credit Facility, the "Loan Facilities"), among United, as borrower, UAL, as parent and guarantor, and JPMorgan Chase Bank, N.A., as fronting lender and replacement lender and as administrative agent, pursuant to which that certain Term Loan Credit and Guaranty Agreement, dated as of April 21, 2021 (as in effect immediately prior to being amended by the Term Loan Facility, the "Existing Term Loan Facility"), was amended and restated. The Revolving Credit Facility provides revolving loan commitments (any loans made thereunder, the "Revolving Loans") of up to $2.865 billion, which increased the borrowing capacity that was available under the Existing Credit Facility by $1.115 billion, and may be drawn upon by United until February 15, 2029, in the case of any Revolving Loans made by the Extending Lenders (as defined in the Revolving Credit Facility), and April 21, 2025, in the case of any Revolving Loans made by the 2024

01 above is hereby incorporated by reference in this Item 2.03 insofar as it relates to the creation of a direct

Item 1.01 above is hereby incorporated by reference in this Item 2.03 insofar as it relates to the creation of a direct financial obligation.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. Exhibit No. Description 10.1 Amended and Restated Revolving Credit and Guaranty Agreement, dated as of February 15, 2024, among United Airlines, Inc., United Airlines Holdings, Inc., each of the several banks and other financial institutions or entities from time to time party thereto, as lenders, JPMorgan Chase Bank, N.A., as administrative agent, and Wilmington Trust, National Association, as collateral trustee 10.2 Amendment No. 2 to Term Loan Credit and Guaranty Agreement, dated as of February 22, 2024, among United Airlines, Inc., United Airlines Holdings, Inc., and JPMorgan Chase Bank, N.A., as fronting lender and replacement lender and as administrative agent 104 Cover Page Interactive Data File (embedded with the Inline XBRL document)

SIGNATURES

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. UNITED AIRLINES HOLDINGS, INC. UNITED AIRLINES, INC. By: /s/ Michael Leskinen Name: Michael Leskinen Title: Executive Vice President and Chief Financial Officer Date: February 22, 2024

View Full Filing

View this 8-K filing on SEC EDGAR