United boosts debt sale 36% to $6.8b on demand surge

United ’s second attempt to pull off a debt sale looks to have worked. The airline boosted the size of the offering on Thursday, with investors clamoring to get a piece of the debt backed by its frequent-flyer program. The package was increased to $6.8b from $5b, and the yields are significantly lower than the double-digit ones offered on a $2.25b bond sale that the carrier nixed last month after it was unsatisfied with the terms. The company is now planning to sell $3.8b of senior-secured bonds after initially pitching a $3b deal, while the leveraged loan portion has been increased by $1b to $3b, according to people familiar with the matter. Total orders for the combined offering were more than $16b earlier Thursday, the people said, asking not to be identified discussing a private matter. United’s bond may yield 7% to 7.26%, the same as levels discussed prior to the size increase. The debt is expected to be sold at a discounted price of 98.75 cents on the dollar. The discounted price offered on the loan portion was earlier narrowed to 98 cents on the dollar from 97 cents, and may yield around 7.03% to 7.3%.<br/>