CHICAGO (AP) — United Continental Holdings Inc. said on Thursday that it will issue notes to the Pension Benefit Guaranty Corp. under a series of payouts that could eventually total $500 million.
The arrangement dates to United Airlines' trip through bankruptcy protection. It terminated its pensions in 2005, handing them over to the PBGC, the federal agency that takes over pension plans when the employer can no longer support them. United emerged from bankruptcy protection in 2006.
The agreement calls for United to issue notes if it meets certain profit goals between 2009 and 2017. That happened for the period that ended June 30, the company said. That means it has to issue $62.5 million in 8 percent notes by Feb. 14, 2012.
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