United Continental Holdings has agreed to swap 5.19 million in common shares of stock for $45 million in debt, as the airline continues to reduce its debt load.
Four debt holders agreed to take the equity in exchange for their debt plus a cash payment for a portion of the notes' future interest, according to a stock exchange filing on 17 May.
The debt is part of United's 6% senior convertible notes that are due in 2029, the filing shows. The notes closed in October 2009.
The notes had $345 million in outstanding principal at the end of 2012, according to the airline's annual report.
United reduced long-term debt and capital leases by 2.5% to $10.95 billion at the end of the first quarter. Debt was down 3.1% since the end of January 2012.