New Issue-Continental Airlines sells $150 mln conv bonds

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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

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