United Airlines to offer $2.25 billion bonds in private deal

(Reuters) – United Airlines Holdings Inc said it plans to raise $2.25 billion through a bond offering as it grapples with a slump in air travel demand due to government-mandated lockdowns across the world.

The No. 3 U.S. airline said it would offer the bonds in two tranches that will mature in 2023 and 2025 respectively.

The net proceeds from the offering will be used to repay a $2 billion term loan and for general corporate purposes.

(Reporting by Rachit Vats in Bengaluru; Editing by Supriya Kurane)