P.M. BRIEFING : United Buyout Put at $9.45 Billion
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CHICAGO — The total cost of an employee-management group’s leveraged buyout of United Airline’s parent UAL Corp. would be $9.45 billion, according to a merger agreement filed with the Securities and Exchange Commission.
The $300-a-share tender offer for the parent company of United Airlines was to begin today.
According to the agreement filed with the SEC, the buyout group will require $6.8 billion to purchase UAL’s 22.65 million fully diluted shares. It said the group may refinance $950 million in existing UAL debt, which would leave $512 million in long-term debt and $411 million in capital leases outstanding.
In addition, there are fees and a $1.3-billion credit facility for working capital included in the total buyout cost.
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