United Airlines is planning to raise $5 billion by borrowing against its customer-loyalty program, stepping up efforts to boost liquidity amid the COVID-19 pandemic.
The committed financing will be secured by the MileagePlus rewards program, United said in a statement Monday. Goldman Sachs, Barclays and Morgan Stanley are arranging the deal, which is expected to close by the end of July.
United is seeking to strengthen its balance sheet to contend with what it called "the most disruptive financial crisis in the history of aviation." The carrier, which also expects to have access to $4.5 billion in loans from the government's economic rescue package, said it would have have total liquidity of $17 billion by the end of September. Average daily cash burn will be about $40 million in the second quarter and $30 million in the third quarter.
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June 15, 2020 at 09:29PM
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United to raise $5 billion through customer loyalty program - Chicago Daily Herald
"loyalty" - Google News
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