United-Continental subsidiary Continental Airlines has issued $843.9 million in pass through certificates to finance the purchase of 21 new Boeing aircraft, including three 787-8s.
The series 2012-2 issue is split between $711.6 million in senior class A notes and $132.3 million in class B notes. Class A carries a 4% coupon and matures on 29 April 2026 with a final distribution on 29 October 2024. It has an initial loan value of 55%. Class B carries a 5.5% coupon and matures on 29 April 2022 with a final distribution on 29 October 2022. It has an initial loan value of 65.2%.
Close is scheduled for 3 October.
The issue is backed by 18 new Boeing 737-900ERs and three 787-8s with an appraised value of $1.32 billion. The 737s will be delivered between November and July 2013, and be used to replace the airline's domestic Boeing 757-200s.
The 787s are registration numbers N27901 (MSN 34821), N27903 (34823) and N29907 (34830) with the first two delivered in December and the third in July 2013. They will be used for international expansion.
Credit Suisse and Morgan Stanley are lead bookrunners and joint structuring agents, Citi, Deutsche, Goldman Sachs and Jeffries are bookrunners, and Natixis is manager of the issue. Wilmington Trust is the trustee. Hughes Hubbard & Reed are legal counsel.