Continental gets $300 million loan

By Sara Rosenberg

New York, June 3 - Continental Airlines Inc. closed on a $300 million secured non-amortizing six-year loan that contains the ability to be upsized by $50 million within 30 days of closing, according to an 8-K filed with the Securities and Exchange Commission Friday.

Merrill Lynch Mortgage Capital Inc. is the administrative agent on the deal.

The loan contains an interest rate of Libor plus 537.5 basis points.

Proceeds will be used for general corporate purposes.

Under the loan agreement, the company is required to maintain a minimum balance of unrestricted cash and cash equivalents of $1 billion at the end of each month.

The Houston-based air carrier's deal closed on June 1.

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