United Continental swaps shares for $62.69 million of 6% convertibles

By Marisa Wong

Madison, Wis., June 7 - United Continental Holdings, Inc. issued 7,215,698 shares of common stock in exchange for $62.69 million principal amount of its 6% convertible senior notes due 2029, according to an 8-K filing with the Securities and Exchange Commission.

The shares were issued on June 7 under an agreement entered into with three noteholders on June 5.

The number of shares was determined using the regular conversion ratio, 115.1013 shares per $1,000 principal amount of notes.

The company also agreed to make a cash payment to the three noteholders as compensation for accrued interest through the settlement date and for a portion of the foregone interest that would have accrued through the earliest call date.

The exchanged notes will be retired.

As previously reported, the company issued shares in exchange for $51,534,000 of the convertibles on May 29, $45,114,000 of the convertibles on May 17 and $30,029,000 of the convertibles on May 31 under similar agreements.

United Continental is a Chicago-based airline operator.

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