UAL Announces Put Option Notification for 6% Convertible Senior Notes
OREANDA-NEWS. United Continental Holdings, Inc. ("UAL") announced that it is notifying holders of the USD 58,291,000 outstanding principal amount of its 6.0% Convertible Senior Notes due 2029 that they have a right, pursuant to the terms of the Notes, to require the Company to purchase, on Oct. 15, 2014, all or a portion of such holders' Notes (the "Put Option") at a price equal to USD 1,000 per USD 1,000 principal amount of the Notes, plus any accrued and unpaid interest to, but not including, Oct. 15, 2014.
As Oct. 15, 2014 is an interest payment date for the Notes, interest accrued up to the purchase date will be paid to record holders as of the interest record date immediately preceding this interest payment date, and, therefore, the Company expects that there will be no accrued and unpaid interest due as part of the purchase price. Under the terms of the Notes, the Company has the option to pay the purchase price for the Notes with cash, stock, or a combination of cash and stock, and has elected to pay for the Notes solely with cash.
As required by rules of the Securities and Exchange Commission, the Company will file a Tender Offer Statement on Schedule TO later today. In addition, UAL's company notice to holders (a copy of which will be attached as an exhibit to such Schedule TO) with respect to the Put Option specifying the terms, conditions and procedures for exercising the Put Option will be available through The Depository Trust Company and the paying agent, which is The Bank of New York Mellon Trust Company, N.A. None of the Company, its board of directors, or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the Put Option.
The holders' opportunity to exercise the Put Option will commence on Sept. 16, 2014, and will terminate at 5:00 p.m. EST, on Oct. 14, 2014. Holders may withdraw any previously delivered purchase notice pursuant to the terms of the Put Option at any time prior to 5:00 p.m. EST, on Oct.14, 2014.
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