United Airlines 2007 Annual Report Download - page 29

PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES.
Pursuant to the Plan of Reorganization, UAL issued or reserved for issuance up to 125,000,000 shares of common stock (the "New UAL Common Stock")
comprised of: (a) 115,000,000 shares to be distributed to unsecured creditors and employees in accordance with the terms of the Plan of Reorganization; and
(b) up to 10,000,000 shares and options (or other rights to acquire shares) pursuant to UAL's share-based management and director compensation plans. On
February 1, 2006, the Predecessor UAL Common Stock ceased trading and was canceled pursuant to the terms of the Plan of Reorganization and UAL has no
continuing obligations for this stock. Beginning February 2, 2006, the New UAL Common Stock has traded on a NASDAQ market under the symbol UAUA.
The following table sets forth the ranges of high and low sales prices per share of the New UAL Common Stock during the last two completed fiscal years.
2007 2006
High Low High Low
1st quarter(a) $ 51.57 $ 36.64 $ 43.00 $ 29.51
2nd quarter 44.32 31.62 40.05 26.02
3rd quarter 50.00 35.90 32.17 21.90
4th quarter 51.60 33.48 46.54 26.77
(a)
During January 2006, the Predecessor UAL Common Stock traded on the over-the-counter market under the symbol
UALAQ.OB between a range of $0.02 and $1.18.
There is no trading market for the common stock of United. UAL and United did not pay any dividends during 2006 or 2007. In December 2007, UAL's
Board of Directors approved a special distribution of $2.15 per common share, or approximately $257 million, which was paid on January 23, 2008 to holders of
record of New UAL Common Stock as of January 9, 2008. As discussed in Note 22, "Distribution Payable" in Combined Notes to Consolidated Financial
Statements, the tax treatment of the special distribution will not be determined until January 2009. Under the provisions of the Amended Credit Facility the
Company's ability to pay distributions on or repurchase New UAL Common Stock is restricted. However, the December 2007 prepayment of $500 million and
further amendment of the Amended Credit Facility allows the Company to undertake an additional $243 million in shareholder initiatives without any additional
prepayment, provided that all covenants within the agreement are met. In addition, the amendment provides that the Company can carry out further shareholder
initiatives in an amount equal to future term loan prepayments, provided the facility covenants are met. See Note 12, "Debt Obligations," in the Combined Notes
to Consolidated Financial Statements for more information related to dividend restrictions under the Amended Credit Facility. Any future determination
regarding dividend or distribution payments will be at the discretion of the Board of Directors, subject to applicable limitations under Delaware law.
Based on reports by the Company's transfer agent for the New UAL Common Stock, there were approximately 1,890 record holders of its New UAL
Common Stock as of February 22, 2008.
28
Source: UNITED AIR LINES INC, 10-K, February 29, 2008