United-Continental issues put option notice of notes due in 2021

Washington DC
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United-Continental Holdings has informed holders of nearly $150 million outstanding principal amount of 5% of convertible notes due in 2021 of a put option on 1 February.

United-Continental is required to purchase all or a portion of the notes at a price equal to $1,000 per $1,000 principal amount of the notes, plus accrued interest.

Under terms of the agreement, United-Continental has the option to pay the purchase price with cash, stock or a combination of the two, and says it has elected to make the payments solely in cash.

United and Continental closed the financial transaction covering their merger in October, and are working to gain a single operating certificate from the FAA in 2011.