Continental Airlines is offering $843.9 million of passthrough certificates in a Continental Airlines (CAL) Series 2012-2 deal that has two classes of amortizing debt.
The EETC comprises a class A worth $711.6 million and a class B worth $132.3 million, according a Sept. 19 investor presentation filed with the Securities and Exchange Commission.
The joint bookrunners and structuring agents on the transaction are Credit Suisse and Morgan Stanley.
Both classes A and B will benefit from a liquidity facility that covers three semi-annual interest payments. In terms of the waterfall, the investor presentation said that interest on the preferred pool balance on the class B certificates is paid ahead of class A certificates’ principal, which is the same as the firm's previous deal called Continental Airlines 2012-1.
The class B certificate holders have the right to buy all, although not less than all, of the outstanding more senior certificate classes at par plus accrued and unpaid interest if certain events happen during a company bankruptcy, the investor presentation said.
Continental will use the proceeds from the offering to buy 21 aircraft. These include financing the purchase of 18 new Boeing 737-900ER aircraft scheduled for delivery between November 2012 and July 2013 and three new Boeing 787-8 aircraft scheduled for delivery between December 2012 and July 2013.
These are strategically core aircraft types to the airline’s fleet operations, all of which are new deliveries, the investor presentation stated.