United Airlines 2014 Annual Report Download - page 76

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Table of Contents
In January 2014, holders of substantially all of the remaining $156 million outstanding principal amount of the 4.5% Senior Limited-Subordination
Convertible Notes due 2021 (the “4.5% Notes”) exercised their right to convert such notes into approximately five million shares of UAL common stock. See
Note 11 of this report for additional information related to exercises of rights under the 4.5% Notes.
On July 24, 2014, UAL announced a $1 billion share repurchase program, which was authorized by UAL’s Board of Directors. UAL may repurchase shares
through the open market, privately negotiated transactions, block trades, or accelerated share repurchase transactions from time to time in accordance with
applicable securities laws. UAL will repurchase shares of common stock subject to prevailing market conditions, and may discontinue such repurchases at
any time.
On July 24, 2014, pursuant to the $1 billion share repurchase program, UAL entered into two separate agreements to repurchase an aggregate of $200 million
of shares of UAL common stock through an accelerated share repurchase program (the “ASR Program”). UAL paid $200 million and received approximately
4.4 million shares. In addition to shares purchased under the ASR Program, UAL spent $120 million on open market repurchases of 2.1 million shares of UAL
common stock in 2014.
At December 31, 2014, approximately 21 million shares of UAL’s common stock were reserved for future issuance related to the conversion of convertible
debt securities and the issuance of equity based awards under the Company’s incentive compensation plans.
As of December 31, 2014, UAL had two shares of junior preferred stock (par value $0.01 per share) outstanding. In addition, UAL is authorized to issue
250 million shares of preferred stock (without par value) under UAL’s amended and restated certificate of incorporation.
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