janders wrote:Not pretty outcome for United.
Lets see if they go back to the market with a reduced size bond offer.
Late on Friday, after some 48 hours of frantic attempts to lure investors to their faltering bond sale, executives at United Airlines let it be known that the deal was dead.
It was an odd moment, stuck smack in the middle of one of the busiest corporate bond booms ever, a period in which investors have shown themselves to be receptive to almost any debt offer backed by good collateral. But this last part was where United got in trouble. For collateral, it had scraped together 360 old jets, some of which analysts considered would be nearly worthless in a few years.
When United pawned old jets, bond traders sent a stark warning
https://www.chicagobusiness.com/airline ... rk-warning
That's strange. Did they not want to put up newer aircraft as collateral for some reason, or are too many of their newer aircraft on lease? If the latter is the case, that really doesn't bode well for their financial health. Sort of makes you wonder what they've been doing to better position themselves for the past decade, apart from stock buybacks, which obviously isn't looking so awesome right now.