Attached files
file | filename |
---|---|
8-K - FORM 8-K - UNITED AIRLINES, INC. | h75070e8vk.htm |
Exhibit 99.1
Continental Airlines Announces Pricing of $800 Million Senior Secured Notes
HOUSTON, Aug. 5, 2010 Continental Airlines, Inc. (Continental), (NYSE: CAL), announced today
that it priced $800 million aggregate principal amount of 6.75% senior secured notes due 2015 (the
Notes).
The Notes will be senior secured obligations of Continental. Continentals obligations under the
Notes will be guaranteed on a senior secured basis by its subsidiaries Air Micronesia, Inc. and
Continental Micronesia, Inc. The Notes are secured by certain of Continentals routes and airport
takeoff and landing slots and airport gate leaseholds utilized in connection with these routes.
Certain of the collateral is currently encumbered under Continentals $350 million secured term
loan facility that is due in June 2011 and the remainder is currently pledged as security for the
advance purchase of mileage credits under its branded credit and debit card agreements. Continental
intends to use approximately $350 million of the net proceeds from the offering to repay the
secured term loan facility and the balance for general corporate purposes.
The Notes will be offered and sold only to qualified institutional buyers in accordance with
Rule 144A under the Securities Act of 1933, as amended (the Securities Act) and to non-U.S.
persons in accordance with Regulation S under the Securities Act. The Notes will not be registered
under the Securities Act or state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any
securities of Continental and shall not constitute an offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is
being issued pursuant to and in accordance with Rule 135c under the Securities Act.
# # #