United Airlines Holdings, Inc. · NASDAQ:UAL
United Airlines — IPO Roadshow (July 2024)
25 slides from United Airlines's IPO roadshow presentation, Jul 22, 2024
Slide 1: United Airlines Series 2024-1 Investor Presentation July 2024
United Airlines Series 2024 - 1 Investor Presentation July 2024
Slide 2: Additional Information
Additional Information 2 The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communicat ion relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC f
Slide 3: Agenda
Agenda 1. Transaction Overview 2. Aircraft Collateral Summary 3. Appendix A : Additional Aircraft Characteristics 3
Slide 4: Transaction Overview
Transaction Overview 4
Slide 5: Transaction Overview (1/2)
Transaction Overview (1/2) United Airlines, Inc. (“United”, “UAL” or the “Company”) intends to raise up to approximately $1,354,657,000 through the offe rin g of the following Pass - Through Certificates, Series 2024 - 1 (the “Certificates”) — Class AA face amount of $969,187,000 — Class A face amou
Slide 6: Transaction Overview (2/2)
Transaction Overview (2/2) ▪ The transaction’s legal structure will include standard provisions, as well as recent market adjustments, including: — Controlling party must meet commercial reasonableness standard when disposing of any collateral post - default, and no breakup or other fees (excluding
Slide 7: United Series 2024-1 EETC Structural Summary
Class AA Class A Face Amount $969,187,000 $385,470,000 Expected Ratings (Moody’s / S&P) Aa3 / AA A3 / A Initial / Max LTV 1 44.0% / 44.4% 61.5% / 62.0% Weighted Average Life (Years) 8.5 8.5 Regular Distribution Dates February 15, August 15 February 15, August 15 Final Expected Distribution Date 2 Fe
Slide 8: Key Structural Elements
Key Structural Elements Cross - Collateralization and Cross - Default ▪ The Equipment Notes will be cross - collateralized by all aircraft in the collateral pool ▪ All indentures will include cross - default provisions Buyout Rights ▪ After a Certificate Buyout Event, subordinate Certificate holders
Slide 9: Aircraft Collateral Summary
Aircraft Collateral Summary 9
Slide 10: UAL 2024-1 Collateral Overview
UAL 2024 - 1 Collateral Overview Note: Statistics are weighted by the LMM. Key Statistics Aircraft Type 48x aircraft $2.2bn LMM ~3.8 - year average age 71% New Technology 33% 26% 17% 12% 9% 3% 787-10 737 MAX 9 737-900ER 737 MAX 8 777-300ER 737-800 Aircraft Type # of Aircraft LMM ($mm) % of Portfolio
Slide 11: Aircraft Collateral Significance to United's Fleet
Aircraft Collateral Significance to United’s Fleet ▪ Each asset type included in the 2024 - 1 collateral pool has an important strategic fit within United’s broader fleet: — The 737 MAX is critical to United’s fleet renewal strategy; the new technologies on the MAX aircraft include advanced technolo
Slide 12: Detailed Portfolio Breakdown
12% 59% 9% 7% 14% 0% 10% 20% 30% 40% 50% 60% 70% 0 - 1yrs 1 - 2yrs 2 - 6yrs 6 - 12yrs 12 - 15yrs Aircraft Types Portfolio Age: WA Age 3.8 years UAL 2024 - 1 Collateral 48x Aircraft 33% 26% 17% 12% 9% 3% 787-10 737 MAX 9 737-900ER 737 MAX 8 777-300ER 737-800 11% 5% 18% 40% 27% 0% 10% 20% 30% 40% 50%
Slide 13: LTV and Paydown Profile
LTV and Paydown Profile Class AA LTV (RS) Class A LTV (RS) Class AA Debt Balance (LS) Class A Debt Balance (LS) Note: Reflects the projected value as of disposal period. The transaction is structured to de - lever quickly through the tenor 13 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 200 400 600
Slide 14: Aircraft Collateral Summary and Equipment Note Maturity Dates (1/2)
Aircraft Number Manufacturer Serial Number Body Type Aircraft Type Engine Type Month of Delivery Age (years) Appraisal Values (mm) 2 LMM Class AA / A Equipment Note Maturity Date mba BK ASG 1 44309 Narrowbody 737 MAX 8 LEAP 1B - 28 23 - Jun 1.2 51.2 54.5 51.3 51.3 Feb - 37 2 64609 Narrowbody 737 MAX
Slide 15: Aircraft Collateral Summary and Equipment Note Maturity Dates (2/2)
Aircraft Collateral Summary and Equipment Note Maturity Dates (2/2) Note: Statistics are weighted by the LMM. 1. Reflects the maintenance adjusted base value of each aircraft as appraised by ASG, BK and mba as of June 1, 2024. Aircraft Number Manufacturer Serial Number Body Type Aircraft Type Engine
Slide 16: Appendix A: Additional Aircraft Characteristics
Appendix A: Additional Aircraft Characteristics 16
Slide 17: Aircraft Collateral Pool Importance
Aircraft Collateral Pool Importance Aircraft type % of UAL 2024 - 1 (By Value) # of Aircraft Average Age by Type Importance to United 737 MAX 8 12% 5 0.9 ▪ Key component of the ‘United Next’ growth strategy, enabling reduced network reliance on regional aircraft ▪ Offers superior takeoff performance
Slide 18: Boeing 737 MAX 8 Aircraft
Boeing 737 MAX 8 Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 737 - 7/ - 8, Q2 2024 ▪ 737 MAX 8 is United’s youngest sub - fleet type and a key component of the ‘United Next’ growth strategy, helping expand its fleet and up - gauge on routes across its network. ▪
Slide 19: Boeing 737 MAX 9 Aircraft
Boeing 737 MAX 9 Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 737 - 9/ - 10, Q2 2024 ▪ 737 MAX 9 is currently United’s largest 737 MAX variant, and a key component of the ‘United Next’ growth strategy, helping expand its fleet and up - gauge on routes across its n
Slide 20: Boeing 737-800 Aircraft
Boeing 737 - 800 Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 737 - 800, Q2 2024 ▪ United operates 141 737 - 800 aircraft, the most of any of its fleet types ▪ Accommodates 166 passengers in two - class configuration. ▪ Alongside the 737 - 900ER, are the workhorse
Slide 21: Boeing 737-900ER Aircraft
Boeing 737 - 900ER Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 737 - 900/900ER, Q2 2024 ▪ Key medium - sized narrowbody, offering up - gauge opportunities from smaller - sized aircraft for markets with stronger demand. ▪ Accommodates 179 passengers in two - class
Slide 22: Boeing 777-300ER Aircraft
Boeing 777 - 300ER Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 777 - 300ER, Q2 2024 ▪ The 777 - 300ER is United’s largest capacity long - range widebody, serving high - demand international routes to key markets in Europe, Asia and Oceania. ▪ Largest Boeing 777 s
Slide 23: Boeing 787-10 Aircraft
Boeing 787 - 10 Aircraft Sources: United Airlines, Inc, Cirium / Ascend Market Commentary Boeing 787 - 10, Q2 2024 ▪ Key component of the ‘United Next’ international growth strategy, flying primarily on Europe and Trans - Pacific routes. ▪ Largest Boeing 787 sub - fleet type, offering superior unit
Slide 24: 737 MAX – Leading Fuel Efficiency Improvements
737 MAX 8 over 737-800W 737 MAX 8 over A320ceo (15%) (15%) (21%) 737 MAX – Leading Fuel Efficiency Improvements 1. The Boeing Company; 2. Assumes 874 nautical mile trip in 2023 U.S Dollars on a two class seating configuration (166 seats 737 - 800W, 150 seats A320ceo and 166 seats 737 - MAX 8) 3. Ass
Slide 25: Dreamliner – Technology Update
787 Dreamliner – Technology Update 1. The Boeing Company; 2. Assumes 5,053 nautical mile trip in 2023 U.S Dollars on a two - class seating configuration (276 seats 7 77 - 200ER, 167 seats 767 - 300ERW, 257 seats 787 - 9, 318 seats 787 - 10) New technologies on 787 include advanced wing design, compo