United Continental More Than Doubles Plane Notes to $425 Million
Stock Chart for United Continental Holdings Inc (UAL)
United Continental Holdings Inc. (UAL) more than doubled its offering of junk-rated securities backed by passenger planes, issuing $425 million of the debt.
The world’s largest airline sold 6.125 percent pass-through certificates maturing in 2018 through its Continental Airlines unit after estimating earlier today in a filing that the deal size would be $200 million, according to data compiled by Bloomberg.
The Class C certificates, which rank below two other portions of previously issued debt, will be secured by 42 Boeing Co. (BA) aircraft, Continental said later today in an updated filing. The certificates were rated four levels below investment grade at B1 by Moody’s Investors Service.
A portion of the sale’s proceeds will help finance the purchase of 19 new Boeing planes scheduled for delivery from December 2012 to September 2013, according to the filing.
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