SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

United Airlines announced it will raise $9bn through a combination of loans and bonds. Part of the borrowing will go towards paying-off $520mn that the airline borrowed from the federal government program last year as airlines suffered due to the pandemic. Proceeds will also be used towards refinancing a $1.4bn term loan, $1bn revolving credit line and to add cash to their balance sheet. The planned issuance is similar in nature to American Airlines’ $10bn debt issuance in March that set the record for the largest debt package by an airline where part of the proceeds were to be used to repay the term loan facility offered by the US Treasury. “The market has been open like crazy for airlines… They have issued debt right and left, and they have less pressure on liquidity” said Roger King of CreditSights.

United’s bonds were stable with their 4.25% 2022s at 102.2, yielding 2.7% and their 4.875% 2025s at 101.6, yielding 4.4%.

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