ATLANTA, Sept 30 (Reuters) - United Airlines parent UAL Corp said on Wednesday it plans to sell common stock and notes, making it the latest airline to tap the capital markets in recent weeks and sending its stock more than 6 percent lower.
The carrier said it plans to offer 19 million common shares and $175 million of convertible notes due 2029 in public offerings to raise money for general corporate purposes.
Underwriters for the offerings would be granted an option for an added 2.85 million common shares, and an additional $26.25 million of convertible senior notes, the airline said.
Rivals including Delta Air Lines Inc, AMR Corp and US Airways Group have moved to bolster their balance sheets in recent weeks with equity and/or debt offerings. Sentiment on U.S. airlines has been improving as analysts expect an eventual pickup in air travel.
J.P. Morgan Securities, Morgan Stanley & Co and Goldman Sachs & Co Wertpapier are managers of the offerings, UAL said.
The UAL offerings were announced after markets closed on Wednesday. Shares of the carrier fell more than 6 percent in extended trading after the bell from their $9.22 Nasdaq close.
(Reporting by Karen Jacobs; Editing by Richard Chang) Keywords: UAL/ (karen.jacobs@thomsonreuters.com; +1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The carrier said it plans to offer 19 million common shares and $175 million of convertible notes due 2029 in public offerings to raise money for general corporate purposes.
Underwriters for the offerings would be granted an option for an added 2.85 million common shares, and an additional $26.25 million of convertible senior notes, the airline said.
Rivals including Delta Air Lines Inc, AMR Corp and US Airways Group have moved to bolster their balance sheets in recent weeks with equity and/or debt offerings. Sentiment on U.S. airlines has been improving as analysts expect an eventual pickup in air travel.
J.P. Morgan Securities, Morgan Stanley & Co and Goldman Sachs & Co Wertpapier are managers of the offerings, UAL said.
The UAL offerings were announced after markets closed on Wednesday. Shares of the carrier fell more than 6 percent in extended trading after the bell from their $9.22 Nasdaq close.
(Reporting by Karen Jacobs; Editing by Richard Chang) Keywords: UAL/ (karen.jacobs@thomsonreuters.com; +1 404 493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.