Continental Airlines' Pass-Thru Certs Rated by S&P.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 10/21/97--Standard & Poor's today assigned the following ratings to Continental Airlines Inc.'s various tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". of pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size series 1997-4, a drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: under the Rule 415 shelf registration dated Sept. 4, 1997: -0- -- Double-`A'-plus to class A certificates, -- Single-`A'-plus to class B certificates, and -- Triple-`B'-plus to class C certificates. The certificates, totaling $752 million, will be secured by equipment notes issued by Continental directly or issued in connection with leveraged leases to Continental financing three B777-200, five B737-500, six B737-700, and ten B737-800 passenger jet aircraft to be delivered over the period April 1998 through November 1998. Ratings are based on the corporate credit rating of Continental Airlines Inc. (double-'B'-minus/Stable), on the availability of special protections under Section 1110 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
The diversity of Boeing aircraft being financed provides some reduction in risk for creditors. The B777-200 is a medium-sized, long-range widebody, the B737-800 is a large narrowbody, the B737-700 is a medium-sized narrowbody, and the B737-500 is a small narrowbody aircraft Noun 1. narrowbody aircraft - a commercial airliner with a single aisle narrow-body, narrow-body aircraft airliner - a commercial airplane that carries passengers . All except the last of these represent Boeing's newest generation of aircraft in that category. Accordingly, the loan-to-values required for achieving the targeted rating upgrades above Continental's double-'B'-plus equipment trust certificate rating were slightly less stringent than the standard guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. used for single-model financings (in the case of the class C certificates, the maximum loan-to-value could have been slightly higher and still have achieved its triple-'B'-plus rating). The loan-to-values on the 1997-4 certificates, at the maximum point during the life of the rated securities, are as follows: -0- -- Class A certificates: 44%; -- Class B certificates: 55% (cumulative, including above); and -- Class C certificates: 65% (cumulative, including above). Like other enhanced pass-through certificates, these have access to dedicated liquidity facilities sufficient to cover 18 months of scheduled interest payments. The liquidity facilities are intended to allow continued debt service while planes are repossessed and sold, should the leases be rejected in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . OUTLOOK: STABLE Standard & Poor's anticipates that these ratings would change if and as the rating of Continental changes. Accordingly, the rating outlook on these securities also is stable. However, ratings are not expected to change with variations in the prices of jet aircraft, since the criteria assume periodic cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. changes in aircraft values, Standard & Poor's said. ---CreditWire CONTACT: Philip Baggaley, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1309 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion