Continental Secures Financing for NEW 737's

[FLY CONTINENTAL]

Continental Airlines Announces Sale of Pass Through Certificates to Finance Acquisition of 30 New Boeing AircraftHOUSTON, April 10, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Continental Airlines, Inc. (NYSE: CAL) today announced the sale of $1,146,810,000 of Continental Airlines Pass Through Certificates, Series 2007-1. The Certificates were issued in three different series, comprised of $756,762,000 of Class A Certificates with a coupon of 5.983% per annum, $221,850,000 of Class B Certificates with a coupon of 6.903% per annum and $168,198,000 of Class C Certificates with a coupon of 7.339% per annum. Proceeds from the sale of the Certificates will initially be held in escrow by a depositary institution. The escrowed funds will be used to acquire equipment notes that will be issued by Continental to finance its purchase of 30 new Boeing 737-900ER and 737-800 aircraft scheduled for delivery from January 2008 to March 2009. Continental additionally confirmed orders for 25 787 aircraft.
The Certificates were offered and sold pursuant to the Prospectus Supplement, dated March 27, 2007, to the Prospectus, dated April 10, 2006, of Continental. A copy of the Prospectus Supplement is available on Continental's web site at continental.com under "About Continental", "Investor Relations", "SEC Filings" or by writing to DeAnne Gabel, Director - Investor Relations, Continental Airlines, Inc., P.O. Box 4607, Houston, TX 77210-4607.
SOURCE Continental Airlines, Inc.

 

[RIOtoPilot]

?

Can someone enlighten me on what pass through certificates are? Sorry if this is a dumb question, but I'm not sure if they are selling stock or my vacation passes. It almost looks like they are issuing bonds or cds. Thx.

 

[IAHERJ]

Basically these are bonds that will be used to finance the aircraft that were ordered a while back. This is a way most airlines finance new equipment and was expected for us at CAL. It didn't affect our stock price due to the fact that Wall Street knew that CAL would be funding the new fleet in this fashion thus not making any big news. For us(pilots) it means that they are serious about getting the planes and they will be paid for thus solidifying the delivery dates etc.

IAHERJ

 

[RIOtoPilot]

Thanks dude. Never get sick of hearing good news.

 

[Ex737Driver]

The real good news is the delivery of 2-3 aircraft every month for the next two years. Add the 787's in on that and we are taking delivery of 3-4 aircraft a month in 09.

 

[AAflyer]

The real good news is the delivery of 2-3 aircraft every month for the next two years. Add the 787's in on that and we are taking delivery of 3-4 aircraft a month in 09.

Are these NEW aircraft (The 30 aircraft in the above article), or ones already planned for delivery....

Thanks

AA

 

[flatspin7]

Looks like 2008 CAL is getting 15 -800 and 15 900ERs. They looks to be parking 15 -300s. The number can go up or down depending on how things are going.

I dont think CAL can hire enough bodies to properly staff 30 new airplanes in a year.. 30 airplanes * 7 (pilots per seat) *2 seats per airplane = 420 +/- new pilots just on growth. 15 airplanes would be 210 +/- new pilots before retirements.

Considdering we are woefully short staffed as is right now they are going to have to continue to hire like mad for at least the next 2 years.

Age 65 or no 65.

 

[screech]

Hmmmm,

Perhaps they will get around to calling me. patiently waiting.

Cheers.

 

[Ex737Driver]

Are these NEW aircraft (The 30 aircraft in the above article), or ones already planned for delivery....

Thanks

AA

Already included for in the airticle. The plan for CAL is 82 airframes between 2007 and 2012 with a min aircraft level of 371 and a max level of 406. Not Americanish but close to Unitedish. Staffing at CAL will always be a problem.