Continental Airlines Notifies Holders of Redemption of 5% Convertible Notes

HOUSTON and CHICAGO, Nov. 1, 2010 /PRNewswire-FirstCall/ -- Continental Airlines, a wholly owned subsidiary of United Continental Holdings, Inc. (NYSE: UAL), notified the holders of its 5% convertible notes due 2023 of its election to redeem all $175 million outstanding of the notes.

The first redemption in the amount of $75 million of the notes is scheduled for Nov. 4, 2010.  A second redemption for the remaining $100 million of the notes is scheduled for Nov. 24, 2010.  Holders of the notes may elect to convert their notes into shares of common stock of United Continental Holdings, Inc. at a conversion price of $19.0476 at any time prior to close of business on the business day immediately preceding the applicable redemption date.  Holders who elect to convert their notes must satisfy the requirements set forth in the notes.  Upon conversion of any notes, Continental has the right to pay holders surrendering the notes in cash in lieu of shares of common stock of United Continental Holdings, Inc.  However, Continental intends to deliver shares to holders who convert.  

About Continental Airlines

Continental Airlines is a wholly owned subsidiary of United Continental Holdings, Inc. (NYSE: UAL). Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 142 domestic and 131 international destinations. Continental is a member of Star Alliance, which overall offers 21,000 daily flights to 1,160 airports in 181 countries.  Continental has hubs serving Cleveland, Guam, Houston and New York/Newark Liberty, and together with its regional partners, carries approximately 63 million passengers per year.  

United Continental Holdings, Inc. became the holding company for both United and Continental upon close of the merger transaction. The two airlines will operate separately as they begin to integrate key customer services, marketing activities and airport processes.  For more company information, go to continental.com and follow on Twitter and Facebook.

SOURCE Continental Airlines