Continental Airlines today announced that it has contributed $50 million to its defined benefit
pension plan from proceeds received in the second closing under a secured
term loan facility. Continental Airlines and its wholly owned subsidiary,
Continental Micronesia, Inc., borrowed $50 million on June 10, 2005,
raising the total borrowed under such facility to $350 million. “Our employee pension plan continues to be a high priority,” said Chairman
and CEO Larry Kellner. “We are working hard to fulfill our pension
obligations and keep our promises to our employees.”
The contribution is in addition to Continental’s pension plan
contributions earlier this year, bringing its year-to-date pension
contribution to $180 million.
The closing of the initial $300 million borrowing under the term loan
facility occurred on June 1, 2005. With the completion of the second
funding on June 10, the facility is now fully funded.