New Issue-Continental Airlines sells $150 mln conv bonds Thursday June 5, 12:39 PM EDT WHITE PLAINS, N.Y., June 5 (Reuters) - Continental Airlines Inc. (CAL), the No. 5. U.S. air carrier, late Wednesday sold $150 million of 20-year convertible bonds in the 144a private placement market, said market sources on Thursday. The bonds were sold with a coupon of 5.0 percent and at a premium of 42.25 percent above Wednesday's $14.06 closing price of the company's shares on the New York Stock Exchange. The bonds carried a contingent conversion trigger of 120 percent. The size of the deal was increased from $100 million. Citigroup, Morgan Stanley and Credit Suisse First Boston were the joint book-running managers for the sale, the sources said. BORROWER: CONTINENTAL AIRLINES, INC. AMT $150 MLN* COUPON 5.00 PCT MATURITY 6/15/2023 CONV PRICE 20.00 CONV RATIO 50 ACCR INT 6/10/2003 TYPE CONV BONDS ISS PRICE 100 FIRST PAY 12/15/2003 LAST MOODY'S Caa2 YIELD N/A PAY FREQ SEMI-ANNUAL LAST S&P CCC-PLUS CNV PREM 42.25 PCT NON-CALLABLE 7 YRS** *$75 MLN GREENSHOE OVERALLOTMENT OPTION **PUTS AFTER 7, 10, 15 YEARS Roger EWROPS