United Airlines 2015 Annual Report Download - page 43

Debt and Capital Lease Principal Payments
During the year ended December 31, 2013, the Company made debt and capital lease principal payments of $2.3 billion, including the following
prepayments:
• The Company used $900 million from the Credit Agreement, together with approximately $300 million of cash to retire the entire principal
balance of a $1.2 billion term loan due 2014 that was outstanding under United’s Amended and Restated Revolving Credit, Term Loan and
Guaranty Agreement, dated as of February 2, 2007.
• United redeemed all of the $400 million aggregate principal amount of its 9.875% Senior Secured Notes due 2013 and $200 million aggregate
principal amount of 12.0% Senior Second Lien Notes due 2013.
• United redeemed $303 million aggregate principal amount of EETC notes.
Financing Activities Not Affecting Cash
UAL issued approximately 28 million shares of UAL common stock pursuant to agreements that UAL entered into with certain of its securityholders in
exchange for approximately $240 million in aggregate principal amount of UAL’s outstanding 6% Convertible Senior Notes held by the holders of these
notes. The Company retired the 6% Convertible Senior Notes acquired in the exchange.
For additional information regarding these Liquidity and Capital Resource matters, see Notes 3, 11, 13 and 14 to the financial statements included in Part II,
Item 8 of this report. For information regarding non-cash investing and financing activities, see the Company’s statements of consolidated cash flows.
Credit Ratings. As of the filing date of this report, UAL and United had the following corporate credit ratings:
S&P Moody’s Fitch
UAL BB- Ba3 BB-
United BB- * BB-
*The credit agency does not issue corporate credit ratings for subsidiary entities.
These credit ratings are below investment grade levels. Downgrades from these rating levels, among other things, could restrict the availability or increase the
cost of future financing for the Company.
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Below is a summary of additional liquidity matters. See the indicated notes to our consolidated financial statements included in Part II, Item 8 of this report
for additional details related to these and other matters affecting our liquidity and commitments.
Pension and other postretirement plans Note 8
Hedging activities Note 10
Long-term debt and debt covenants Note 11
Leases and capacity purchase agreements Note 13
Commitments and contingencies Note 15
Contractual Obligations. The Company’s business is capital intensive, requiring significant amounts of capital to fund the acquisition of assets, particularly
aircraft. In the past, the Company has funded the acquisition of aircraft through outright purchase, by issuing debt, by entering into capital or operating
leases, or through vendor financings. The Company also often enters into long-term lease commitments with airports to ensure access to terminal, cargo,
maintenance and other required facilities.
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Source: United Continental Holdings, Inc., 10-K, February 18, 2016 Powered by Morningstar® Document Research℠
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