United Airlines 2013 Annual Report Download - page 44

Table of Contents
Significant financing events in 2011 were as follows:
• The Company entered into a $500 million revolving credit facility with a syndicate of banks, led by Citibank, N.A., as administrative agent. The
facility was undrawn when it was replaced on March 27, 2013 with the Credit Agreement. The Company terminated its prior $255 million revolver
under the Amended Credit Facility on December 21, 2011;
• During 2011, the Company made debt and capital lease payments of $2.6 billion. These payments include $150 million related to the repurchase of
UAL’s 5% Senior Convertible Notes and $570 million related to the repurchase of UAL’s 4.5% Senior Limited-Subordination Convertible Notes; and
• The Company received $239 million in 2011 from its December 2010 pass-through trust financing. The proceeds were used to fund the acquisition of
new aircraft and in the case of the currently owned aircraft, for general corporate purposes.
For additional information regarding these matters, see Notes 3, 11, 13 and 16 to the financial statements included in Part II, Item 8 of this report.
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 B B2 B
United B * B
* 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 (a) Note 11
Leases and capacity purchase agreements Note 13
Commitments and contingencies Note 15
(a) Certain of the Company’s financing agreements have covenants that impose certain operating and financial restrictions, as applicable, on the Company and its material subsidiaries.
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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