It's official: United gets loan

With underwriting agreement by Citigroup and JP Morgan, United Airlines announced it had officially secured its US government-backed $2 billion in financing to leave Chapter 11. United Airlines parent UAL Corp. said JP Morgan and Citigroup would each underwrite the $200 million of the non-guaranteed portion of the loan and $800 billion of the guaranteed portion. The underwriting requirement was part of United’s deal with the Air Transportation Stabilization Board, which required it as part of the government’s agreement to participate in the loan. “The competitive terms of this financing package – especially the willingness of both banks to include a substantial amount of at-risk funding – reflect the extraordinary progress United has made this past year,” said Glenn Tilton, chairman and CEO. In a statement, the company said it has also improved its revenue performance and generated an operating profit of $19 million in the third quarter of this year, marking the first time it has shown an operating profit since the first quarter of 2000.