By Susanna Moon
Chicago, Dec. 12 - Continental Airlines, Inc. priced $425 million of class C pass-through certificates, series 2012-3 (B1/B+/BB-), at par to yield 6.125%, according to an FWP with the Securities and Exchange Commission.
The certificates have a make-whole spread at 50 basis points over Treasuries.
The company said in an investor presentation on Wednesday that it sold the pass-through certificates with Credit Suisse, Morgan Stanley and Goldman, Sachs & Co. as the lead bookrunners.
Continental also registered to sell $200 million of the class C pass-through certificates, series 2012-1, in a separate FWP filing with the SEC. The class A and class B pass-through certificates of the same series were originally issued on March 22. The class C certificates will rank junior to the class A and class B certificates.
Proceeds from the sale of the class C certificates will be used by the class C trust to acquire series C equipment notes issued by Continental Airlines. The equipment notes will be secured by 20 Boeing aircraft owned by Continental and one additional Boeing aircraft scheduled for delivery in December, the filing noted. These 21 aircraft will also secure equipment notes issued to the trusts for the class A and class B certificates.
The class C certificates may be sold only to qualified institutional buyers under Rule 144A.
Proceeds will be used to purchase additional equipment notes as the company's aircraft are financed.
The commercial airline is based in Houston.
| Issuer: | Continental Airlines
|
| Issue: | Pass through certificates
|
| Amount: | $425 million
|
| Maturity: | April 29, 2018
|
| Final distribution: | April 29, 2018
|
| Initial average life: | 5.3 years
|
| Coupon: | 6.125%
|
| Price: | Par
|
| Yield: | 6.125%
|
| Managers: | Credit Suisse, Morgan Stanley and Goldman, Sachs & Co. (lead bookrunners); Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch and J.P. Morgan Securities LLC (underwriters)
|
| Pricing date: | Dec. 12
|
| Settlement date: | Dec. 27
|
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