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UNITED AIRLINES TO REDEEM $500 MILLION IN SUBORDINATED NOTES

 CHICAGO, April 26 /PRNewswire/ -- United Airlines announced today that on June 15, 1993, it will redeem two issues of senior subordinated notes totaling $500 million. A notice to noteholders will be mailed later this week.
 The redemption is part of United's ongoing program to reduce costs. One issue of the notes is $150 million due in 1995; the other is $350 million due in 1998. The interest rates of 12.5 percent and 13 percent, respectively, are well above the company's current borrowing rates.
 United said it will record an extraordinary loss of $19 million, net of tax benefits, in the first quarter of 1993 as a result of prepaying the notes. The costs of prepayment, including redemption premium, will be more than offset by interest savings in the first year. The $500 million of senior subordinated notes were issued in 1988 with the proceeds being used to pay down a portion of $1.2 billion of borrowings under a term loan facility.
 -0- 4/26/93
 /CONTACT: Joe Hopkins, corporate communications, 708-952-5770 or night, 708-952-4088, or Pamela Hanlon, investor relations, 708-952-7501, both of United Airlines/
 (UAL)


CO: United Airlines ST: Illinois IN: AIR SU:

TM -- NY126 -- 1010 04/26/93 17:28 EDT
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Publication:PR Newswire
Date:Apr 26, 1993
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