October 7, 2009 (FinancialWire) — UAL Corp.’s (NASDAQ: UAUA) United Airlines subsidiary has priced a public offering of enhanced equipment trust certificates, to refinance an existing EETC facility that covers a number of the airline’s aircraft. The $659 million financing has an interest rate of 10.40% and a final expected distribution date of November 1, 2016.

United plans to use the net proceeds to repay at par all of the $568 million related to its outstanding 2001-1 EETC, and will use the around $90 million of remaining net proceeds, after accounting for all transaction-related fees and expenses, for general corporate purposes.

The airline said that, as a result of the transaction, principal payment obligations will be reduced in 2010 by around $215 million and in 2011 by around $100 million.

Chicago-based United operates around 3,300 flights a day on United and United Express to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C.

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