By The Associated Press
Thursday, November 12, 2009
Continental Airlines Inc. said Thursday it will issue $644 million in equipment notes to finance 19 Boeing aircraft.
In a regulatory filing, Continental said the deal covers eight planes it already owns and 11 new planes it expects to receive in the first half of next year.
Most large U.S. airlines have suffered large losses as travel demand has fallen due to the weak economy and cuts in corporate travel. Continental lost $367 million in the first nine months of this year as revenue plunged 20 percent from a year earlier.
Airlines including American, United and Delta have been busy in recent months raising money to get through the typically slower winter season.
Continental said in Thursday's filing with the Securities and Exchange Commission that it will issue $527.6 million in notes with an annual interest rate of 7.25 percent, and $116.8 million in notes paying 9.25 percent. Interest will be paid semiannually starting on May 10, 2010.
Wilmington Trust is serving as pass-through trustee.
Shares of Continental fell 13 cents to $13.37 in afternoon trading.