United Continental swaps shares for $51.53 million of 6% convertibles

By Marisa Wong

Madison, Wis., May 29 - United Continental Holdings, Inc. issued 5,931,629 shares of common stock in exchange for $51,534,000 principal amount of its 6% convertible senior notes due 2029, according to an 8-K filing with the Securities and Exchange Commission.

The shares were issued on May 29 under agreements entered into with three noteholders on May 23.

The number of shares issued was based on a conversion ratio of 115.1013 common shares per $1,000 principal amount of notes.

The company will also make a cash payment to the three noteholders to compensate them for accrued interest through the settlement date of the exchange and for a portion of the foregone interest that would have accrued through the earliest date that the notes are callable.

The exchanged notes will be retired.

United Continental is a Chicago-based airline operator.

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