Continental Airlines - part of United Continental Holdings - is looking to raise $892 million through the issuance of Class A and Class B tranches in its Pass Through Certificates, Series 2012-1.
The equipment notes will be secured by 18 new Boeing aircraft scheduled for delivery between February and November 2012, comprising 14 737-900ERs and four 787-8s. The 787s are due for delivery between September and November 2012. Three 737-900ERs acquired by Continental in 2009 are also in the collateral.
The Class A certificates will rank senior to the Class B certificates. Credit Suisse's New York Branch will provide the initial liquidity facility for the Class A and B certificates. Natixis is the depositary agent.
The $753 million A tranche has a 55.5% initial loan to value. The $139.1 million B tranche has a 65.5% initial loan to value.
The class A tranche has a final marutiry date of October 2025, and the B tranche in October 2021.
Credit Suisse and Morgan Stanley are joint structuring agents and lead bookrunners in transaction. Deutsche Bank Securities and Goldman Sachs & Co are bookrunners, while Citigroup, Jefferies and JP Morgan are the co-managers.