United Airlines is mortgaging its Mileage Plus frequent flyer program, its latest effort to raise the cash it needs to weather the crisis caused by the CCP (Chinese Communist Party) virus, commonly known as the novel coronavirus.
The term loan will come from Goldman Sachs, Barclays and Morgan Stanley, and it will take seven years to repay. The interest rate was not disclosed. United says between this and an additional $4.5 billion in federal loans for which it expects to be eligible, it estimates it will have $17 billion in cash on hand by the end of September, roughly three times the normal cash it carries.
