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 raised $4bn via a two-trancher:

  • $2bn via a 5Y bond at a yield of 4.375%, ~30bp inside initial guidance of 4.625%-4.75%
  • $2bn via a 8Y bond at a yield of 4.625%, ~31.25bp inside initial guidance of 4.875%-5%

The bonds have expected ratings of Ba1/BB-. Proceeds, together with credit facilities will be used to refinance their existing revolver, a 2017 term loan, and towards repaying their CARES Act loan. The 5Y tranche maturing in 2026 was priced inside its curve by ~10bp when compared to its 4.875% bond due Jan 2025 that yields 4.47% and currently trades at 101.37.

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