SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: January 29, 1996
(Date of earliest event reported)
UAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-6033 36-2675207
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1200 Algonquin Road, Elk Grove Township, Illinois 60007
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 952-4000
Not Applicable
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
UAL Corporation (the "Company") is filing herewith a press
release issued today by the Company as Exhibit 99.1 which is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit No. Description
99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
UAL CORPORATION
By: /s/ Douglas A. Hacker
Name: Douglas A. Hacker
Title: Senior Vice President -
Finance
Dated: January 24, 1996
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press Release
Exhibit 99.1
Corporate Communications Contacts:
Connie Huff (847) 952-5501
Tony Molinaro (847) 952-4971
Night/Weekend (847) 952-4088
Investor Relations Contact:
Mark Reiser (847) 952-7501
UAL CORPORATION COMPLETES MORE THAN $2.6 BILLION IN
CREDIT IMPROVEMENT INITIATIVES SINCE EMPLOYEE OWNERSHIP
CHICAGO, Jan 29, 1996 -- UAL Corporation, parent company of United
Airlines, continues in its effort to strengthen its balance sheet and
improve its debt rating with the implementation of more than $2.6 billion
in debt retirement and credit improvement initiatives since employees
became majority owners.
Cost reduction achievements in the fourth quarter of 1995 included
completion of a program to retire all of its outstanding Japanese yen-
denominated deferred purchase certificates. UAL Corporation (UAL) also
has terminated operating leases for 39 aircraft related to the deferred
purchase certificates. These actions reduce the company's previously
disclosed minimum lease payment obligations over the next three years by
a total of $426 million.
In addition, during the fourth quarter of 1995, the company
repurchased approximately $179 million of additional debt securities and
approximately $96 million of preferred stock.
During the 18 months from the employee ownership transaction on
July 12, 1994, through year-end 1995, UAL has completed the following
credit improvement initiatives:
- $426 million Termination of operating lease on, and
subsequent acquisition of 39 aircraft
- $195 million Prepayment of deferred purchase certificates
(principal amount)
- $327 million Repurchase of unsecured debt (principal amount)
- $190 million Repurchase of Series B preferred stock
(liquidation preference)
- $426 million Prepayment of aircraft mortgages (principal
amount)
- $269 million Repayment of outstanding commercial paper
- $777 million Pension plan finding
____________
- $2.610 billion Total
UAL also is weighing the possibility of redeeming its 6 3/8 percent
convertible subordinated debentures on or after May 1, 1996, as part of
its debt-reduction program.
The decision to redeem the debentures will depend on financial
markets and other conditions, including the last sale price of its common
stock exceeding $172.20 for 20 trading days within a period of 30
consecutive trading days, including the last trading day. On January 26,
1996, the last sale price of UAL common stock was $156 5/8. Should UAL
redeem such debentures prior to May 1, 1997, holders would receive
$1,043.75 in cash for every $1,000 in principal amount of debentures
redeemed, plus accrued and unpaid interest, if any, up to but excluding
the redemption date.
If UAL issues a notice of redemption, holders may still convert
their debentures through the business day preceding the redemption date.
Upon conversion, holders will receive $541.90 in cash and approximately
3.192 shares of common stock for every $1,000 principal amount of
debentures. If the redemption date is on or after an interest payment
date and prior to the next interest payment record date, holders who
convert will not be entitled to any interest on the debentures.