UAL Trades On Repricing News
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UAL Trades On Repricing News

UAL was trading around par 1/8-par 5/8 from par 7/8 to 101 3/8 on news pricing on the credit was being cut.

UAL was trading around par 1/8-par 5/8 from par 7/8 to 101 3/8 on news pricing on the credit was being cut. "It traded down because the coupon is going down," one portfolio manager said. JPMorgan and Citigroup lead the deal, which was put in place last winter as exit financing for the airline. Pricing is being cut from LIBOR plus 3 3/4%. A meeting was scheduled for Thursday. No further information could be ascertained before CIN went to press.

"It will certainly get repriced; the market likes it a lot," another portfolio manager said. "Clearly there is some room to squeeze it down significantly. Whatever the current price talk is, it will get done tighter than that."

The trade claims for Delta Air Lines and Northwest Airlines also traded a lot last week, both up about three or four points. Delta was trading around 65 and Northwest was trading around 92-95. "There is a lot of activity," a trader said.

Delta has continued to spurn talks with US Airways, which just increased its bid to buy the company to $10.2 billion. According to news reports, Delta has been holding talks with Northwest and United about a possible deal with either of those airlines. A UAL spokesperson did not return an email. Calls to a Delta spokeswoman was not returned. A Northwest spokesman declined comment.

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