United announces pricing of $175 million in Senior Secured Notes

United Air Lines announced the pricing of its offering of $175 million in aggregate principal amount of senior secured notes due 2012. The notes were issued at a discount to their face value, and will carry a coupon interest rate of 12.75% per annum. The notes will be secured initially by a lien on all aircraft spare parts owned by United that are located in the United States, subject to certain exceptions. UAL Corporation will be a guarantor of the notes. The company intends to use the net proceeds from the offering for general corporate purposes.