(Bloomberg) -- United Airlines Holdings Inc. is seeking to raise more than $1 billion by selling shares, stepping up efforts to increase capital to survive a collapse in travel demand.The offering consists of 39.25 million shares an option for the underwriters to buy an additional 3.93 million shares, United said in a statement Tuesday. The deal is expected to price before the market opens Wednesday between $25.95 and $26.50 a share, said a person familiar with the matter. That would be a discount of as much as 6.9% to the last closing price.The share sale, the first by a major U.S. airline during the coronavirus pandemic, underscores efforts by carriers to raise additional funds even after the government stepped in with $50 billion in grants and loans. Passenger totals have fallen about 95% in the U.S. as the disease and government travel restrictions keep many people at home.The push for liquidity reflects airlines’ uncertainty over how long fears of the virus will prompt travelers to avoid flying, further exacerbating the industry’s deep financial troubles. United’s offering may open the doors to similar transactions by other carriers.United fell 1.9% to $27.34 after the close of regular trading in New York. The stock had plunged 68% this year through Tuesday’s close, the sharpest decline on a Standard & Poor’s index of the five biggest U.S. carriers. United’s market value is about $6.89 billion.The Chicago-based company has raised nearly $8 billion this year, including $5 billion in federal grants and loans, to help weather the financial turbulence. United could tap about $20 billion in assets as collateral for additional debt financing, executives said on a conference call with reporters.Morgan Stanley and Barclays Plc are underwriting United’s share offering.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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