Continental Airlines Prices $806 Million Of Pass Through Certificates At 6.623%

Continental Airlines (NYSE: CAI.B and CAI.A) announced today that it has priced approximately $806 million of its Series 1999-1 Pass Through Certificates, the proceeds of which will be used to fund the debt portion of the acquisition costs of nine Boeing 737-700 aircraft, nine Boeing 737-800 aircraft, and four Boeing 777 aircraft.

The Pass Through Certificates, which amortize over their term, will be issued in three classes, with $541,746,000 in principal amount of Class A certificates bearing an interest rate of 6.545% and scheduled to mature in 2019, $137,051,000 in principal amount of Class B certificates bearing an interest rate of 6.795% and scheduled to mature in 2018, and $127,039,000 in principal amount of Class C certificates bearing an interest rate of 6.954% and scheduled to mature in 2009. The certificates will be initially offered by Continental at par. The blended interest rate for the aggregate $805,836,000 of certificates is 6.623%. The transaction is scheduled to close in early February 1999.


The offering is being made through Credit Suisse First Boston, Morgan Stanley Dean Witter, Chase Securities Inc., Goldman Sachs & Co. and Salomon Smith Barney, as underwriters, and a prospectus with respect to the offering meeting the requirements of the Securities Act of 1933 may be obtained from any of them.


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