(AP) — United Airlines said it had priced $700 million of debt, re-mortgaging its Pacific routes and also pledging planes, engines, and even flight simulators as collateral on a different line of credit.
The debt includes $500 million at 9.875 percent and another $200 million at 12 percent, both due in 2013.

In a sign of improving financial health for United, the airline sold more than the originally planned $500 million in debt with a secondary offer for $200 million. And the price on the $500 million in first-lien debt was below the 11% that some analysts were expecting.

The debt is secured by United's authority to operate between the U.S. and Japan as well as points beyond Japan. Other collateral includes takeoff and landing slots and gate leases.

That collateral currently backs United's senior secured credit facility. That debt will now be backed by planes, spare engines, flight simulators, and slots at LaGuardia Airport in New York and Reagan National Airport in Washington.

All the new notes are secured by the same collateral, but the lower interest rate notes are first in line, according to an announcement late Monday.

United said it would use the money for general corporate purposes. Both offerings are expected to close on Friday.

United has been building cash in recent months by refinancing old debt and pledging assets for new debt.

"While the recovery is not yet where we desire it to be, we have seen a steady improvement in our revenue trends over the last several months as signs of an improving economy are beginning to have an impact," Chief Financial Officer Kathryn Mikells wrote in a note to employees. "Given that, and the recent market rally, this is the right time to be in the market raising capital."