United Airlines Holdings Inc on Tuesday announced a public offering to raise more than $1 billion, the first major airline to sell equity to help it survive a sharp travel downturn in the coronavirus pandemic.
FILE PHOTO: A United Airlines passenger jet takes off with New York City as a backdrop, at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. REUTERS/Chris Helgren
The offer of 39.25 million shares, underwritten by Morgan Stanley and Barclays, was priced at $26.50 per share, United said in a statement, a discount of 4.9% on Tuesday’s close. In an effort to boost capital and save costs until people start flying again, U.S. airlines have grounded fleets, raised debt, cut executive salaries, asked employees to take unpaid leaves of absence and sought government aid.
The stock offering announced Tuesday includes a 30-day option for the underwriters, Morgan Stanley and Barclays, to purchase up to 3.93 million additional shares.
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