United Continental swaps shares for $45.11 million of 6% convertibles

By Angela McDaniels

Tacoma, Wash., May 17 - United Continental Holdings, Inc. issued 5,192,677 shares of common stock in exchange for $45,114,000 principal amount of its 6% senior convertible notes due 2029, according to an 8-K filing with the Securities and Exchange Commission.

The shares were issued on May 17 under agreements entered into with four noteholders on May 14.

The number of shares was determined using the regular conversion ratio, 115.1013 shares per $1,000 principal amount of notes.

The company also agreed to make a cash payment to the four noteholders to compensate them for accrued interest through the settlement date and for a portion of the foregone interest that would have accrued through the earliest call date.

The exchanged notes will be retired.

United Continental is a Chicago-based airline operator.

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