United Taps Munis for $522 Million Houston Airport Deal (1)

United Airlines Inc. is coming to the municipal bond market with a nearly $522 million junk deal in a year when investors have been rewarded for snapping up high-yield airline debt.

A portion of the bonds will help finance a catering operations facility for United at George Bush Intercontinental Airport in Houston. Though issued by the city, the debt package is secured by rent payments made by the airline.

The catering facility bonds are part of a package that will help fund the construction of a new, roughly 140,000 square-foot ground services equipment facility and refund a portion of Houston’s ...