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United Airlines Expects To Have About $17 Bln In Available Liquidity By September

United Airlines Holdings, Inc. (UAL) said Monday that it expects to have total available liquidity of about $17 billion at the end of the third quarter of 2020.

The amount reflects committed financing of $5 billion to be secured by the airline's loyalty program, MileagePlus, as well as the $4.5 billion expected to be available to the company through the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act Loan Program.

The airline noted that the $9.5 billion of additional liquidity will provide it with even more flexibility amid the coronavirus crisis.

United Airlines said it believes it has sufficient slots, gates and routes collateral available to meet the collateral coverage that may be required for the full $4.5 billion available to it under the loan program.

The company added that it expects an average cash burn of about $40 million per day in the second quarter of 2020 and intends to reduce it to approximately $30 million per day in the third quarter.

Goldman Sachs Lending Partners LLC, Barclays Bank PLC and Morgan Stanley Senior Funding, Inc. have committed to provide and have agreed to arrange the syndication of the MileagePlus financing through a term loan facility, which is expected to close by the end of July 2020.

Goldman Sachs Lending Partners LLC will act as the sole structuring agent and lead left arranger for the transaction.

According to United Airlines, the MileagePlus loyalty program has more than 100 million members and over 100 program partners.

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