United Airlines To Raise $1 Billion In Stock Offering

United Airlines To Raise $1 Billion In Stock Offering

United Airlines Holdings Inc. (NASDAQ: UAL) late Tuesday announced the sale of 39 million shares of new stock to raise $1 billion and bolster its liquidity as it tries to ride out the meltdown of the travel market caused by the coronavirus pandemic.The price of the public offering, which is expected to close April 24, was set at $26.50 per share.The airline said Monday it was $2 billion in the red during the first quarter and painted a bleak financial picture for the rest of the year on the expectation customers will be slow to return to the skies even when the outbreak dissipates. Planes are flying nearly empty and United plans to cut domestic capacity to 10% in May and June.The Chicago-based carrier has been scrambling for money to bolster ongoing operations at a time when revenue has slowed to a trickle. It is receiving $5 billion in workforce assistance...

Oil’s Dividends May Not Withstand Covid and Climate

(Bloomberg Opinion) -- An oil major’s dividend is its solemn pledge that it will deliver no matter the vagaries of the market. But no one planned on those vagaries including negative oil prices. So can Big Oil maintain its dividends? Should it?As so often in this business, oilfield services provide early warning. Announcing quarterly earnings, Schlumberger Ltd. slashed its dividend by 75%, its first cut in at least four decades or so. The stock actually jumped 9% that day. Meanwhile, Halliburton Co. held off cutting but also made it clear it would have no qualms doing so if necessary. Its stock didn’t jump, but did close in the green despite oil closing with a minus sign in front of it that day.Those positive reactions may have had something to do with this:Aggregate indebtedness at the big five Western oil majors — BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA — has...

Oil’s Durable Dividends May Not Withstand Covid-19 and Climate

(Bloomberg Opinion) -- An oil major’s dividend is its solemn pledge that it will deliver no matter the vagaries of the market. But no one planned on those vagaries including negative oil prices. So can Big Oil maintain its dividends? Should it?As so often in this business, oilfield services provide early warning. Announcing quarterly earnings, Schlumberger Ltd. slashed its dividend by 75%, its first cut in at least four decades or so. The stock actually jumped 9% that day. Meanwhile, Halliburton Co. held off cutting but also made it clear it would have no qualms doing so if necessary. Its stock didn’t jump, but did close in the green despite oil closing with a minus sign in front of it that day.Those positive reactions may have had something to do with this:Aggregate indebtedness at the big five Western oil majors — BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA — has...

U.S. firms may face probes over payroll loans, Treasury, DOJ officials warn

U.S. Treasury Secretary Steven Mnuchin warned on Wednesday that companies that received coronavirus rescue money intended for small businesses could be investigated if it appears they did not really need the money. Mnuchin said on Fox Business Network it was "questionable" whether some larger companies qualified for the Paycheck Protection Program (PPP), based on a self-certification step in the loan process. As Congress readies another $310 billion in payroll loan funds for small businesses shut down by the coronavirus, Mnuchin's comments indicate the administration is paying more attention to oversight during this round of funding....