Continental plans to issue notes for aircraft financing

Washington DC
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Houston-based Continental Airlines today told US regulators it plans to issue $644 million in notes to finance eight aircraft currently owned by the carrier and 11 scheduled fro delivery from January to June of next year.

The all-Boeing operator says Wilmington Trust is serving as the pass through trustee. The notes are being issued in two series - $527.6 million bearing a 7.25% annual interest rate and $116.8 million yielding a 9.25%.

Interest on the notes will be paid semi-annually beginning in 10 May next year.