By Andrea Heisinger
New York, Sept. 19 - Continental Airlines priced $843,888,000 million of class A and class B pass-through certificates on Wednesday, according to a FWP with the Securities and Exchange Commission.
The deal included $711.622 million of 4.4% class A certificates (Baa2/A-/) priced at par to yield 4.4%. The certificates have a final distribution of Oct. 29, 2024 and final maturity of April 29, 2026. There is an initial average life of 9.2 years.
The class A certificates have a make-whole spread at 40 basis points over Treasuries.
The sale also included $132.266 million of 5.5% class B certificates (Baa2/BBB-/BBB-) priced at par to yield 5.5%. The certificates feature a final distribution on Oct. 29, 2020 and final maturity of April 29, 2022. There is an initial average life of six years.
The class B certificates have a make-whole spread at 40 bps over Treasuries.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were joint structuring agents and lead bookrunners.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Jefferies & Co. were bookrunners. Natixis Securities Americas LLC was manager.
Proceeds are to be held in escrow, then used to acquire equipment notes that will be issued and secured by 21 new Boeing aircraft.
The commercial airline is based in Houston.
| Issuer: | Continental Airlines
|
| Issue: | Pass through certificates
|
| Amount: | $843,888,000
|
| Structuring agents: | Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies & Co.
|
| Manager: | Natixis Securities Americas LLC
|
| Trade date: | Sept. 19
|
| Settlement date: | Oct. 3
|
|
|
| Class A Certificates
|
| Amount: | $711,622,000
|
| Maturity: | April 29, 2026
|
| Final distribution: | Oct. 29, 2024
|
| Initial average life: | 9.2 years
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | Make-whole at Treasuries plus 40 bps
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
|
|
| Class B Certificates
|
| Amount: | $132,266,000
|
| Maturity: | April 29, 2022
|
| Final distribution: | Oct. 29, 2020
|
| Initial average life: | 6 years
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Spread: | Make-whole at Treasuries plus 50 bps
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
