Continental Airlines Inc. said Wednesday it has priced a public offering of another 7 million primary shares of Class B common stock at $20 a share.
Continental Airlines, which emerged from Chapter 11 bankruptcy protection in April, said the offering's net proceeds - estimated at about $133 million - "will be added to general corporate funds to increase liquidity."Net proceeds, however, could be as much as $153 million, if an over- allotment option issued to the underwriters is exercised.
The offering follows the distribution in early September to Continental Airlines' unsecured creditors of about 1.2 million shares of Class A common stock and 3 million shares of Class B common stock, under the terms of Continental's reorganization plan, according to an individual familiar with the plan.
Managing underwriters for this offering are Merrill Lynch and Co.; CS First Boston; Kidder, Peabody and Co. Inc.; Lehman Brothers and Smith Barney Shearson Inc.