United Airlines notes may yield 11%

United Airlines, a unit of UAL Corp., plans to sell notes due in 2013 that may yield about 11 percent, according to a person familiar with the transaction.

The airline's $500 million of senior secured notes may be secured by Japan routes and slots that were appraised at $873 million by aviation consultant SH&E Inc., said the person, who declined to be identified because terms aren't set.

The routes and slots previously backed the airline's senior secured credit facility, which will now be supported by aircraft including Boeing 777, Boeing 747 and other wide-body airplanes, the person said. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are underwriting the sale.

Proceeds will be used for general corporate purposes, the Chicago-based company said in a statement distributed by PR Newswire.

The third-largest U.S. carrier last sold debt on Nov. 16, issuing $810.3 million of notes backed by aircraft in a two-part offering, according to data compiled by Bloomberg.