Issuer Free Writing Prospectus
Filed pursuant to Rule 433(d)
Registration No. 333-133187
March 27, 2007
Filed pursuant to Rule 433(d)
Registration No. 333-133187
March 27, 2007
Continental Airlines, Inc. (“Continental”)
(NYSE Symbol: CAL)
Continental is increasing the size of the 2007-1 EETC transaction in order to finance more aircraft.
This free writing prospectus sets forth the corresponding material changes to Continental’s
Preliminary Prospectus Supplement dated March 27, 2007 (the “Supplement”), relating to the
Certificates referred to below, and should be read together with the Supplement and the accompanying
Prospectus dated April 10, 2006. The information herein supersedes any inconsistent information set
forth in the Supplement.
| Aircraft to be Financed: | 30 total Aircraft, consisting of 12 Boeing 737-824 and 18 Boeing 737-924ER aircraft, to be selected by Continental from the 39 aircraft described in the Supplement. |
| Aggregate Appraised Aircraft Value (1): | $1,568,874,300 | |||||
| Aggregate Face Amount: | $1,146,810,000 | |||||
| Initial Amount of Deposits: | $1,146,810,000 | |||||
Securities:
|
Class A Pass Through Certificates, Series 2007-1 (“Class A Certificates”) | Class B Pass Through Certificates, Series 2007-1 (“Class B Certificates”) | Class C Pass Through Certificates, Series 2007-1 (“Class C Certificates” and, together with the Class A Certificates and the Class B Certificates, the “Certificates”) | |||
Face Amount:
|
$756,762,000 | $221,850,000 | $168,198,000 | |||
Initial LTV (cumulative) (1): |
48.2% | 62.4% | 73.1% | |||
Highest LTV (cumulative) (2): |
48.9% | 63.3% | 73.9% | |||
| (1) | Determined as of April 19, 2009, the first Regular Distribution Date after all aircraft expected to be financed pursuant to the offering are scheduled to have been delivered. | |
| (2) | See “Loan to Value Ratios” below. |
2
Equipment Notes and the Aircraft
The 30 Boeing aircraft to be financed pursuant to this offering will consist of 12
Boeing 737-824 aircraft and 18 Boeing 737-924ER aircraft. Such Boeing 737-824 and 737-924ER
aircraft will be selected by Continental from among 15 Boeing 737-824 aircraft and 24 Boeing
737-924ER aircraft, respectively, which are scheduled for delivery from January 2008 to March 2009.
See “Description of the Aircraft and the Appraisals—The Appraisals” in the Supplement for a
description of the 39 aircraft from which Continental may select the 30 aircraft that may be
financed with the proceeds of this offering. Set forth below is certain information about the
Equipment Notes expected to be held in the Trusts and the aircraft expected to secure such
Equipment Notes (assuming for purposes of the chart below that the first 12 Boeing 737-824 aircraft
of the 15 Boeing 737-824 aircraft and the first 18 Boeing 737-924ER aircraft of the 24 Boeing
737-924ER aircraft from which Continental may choose are financed hereunder):
| Expected | ||||||||||||||
| Expected | Manufacturer’s | |||||||||||||
| Registration | Serial | Scheduled Delivery | Principal Amount of | Appraised Base | ||||||||||
| Aircraft Type | Number | Number | Month | Equipment Notes | Value (1) | |||||||||
Boeing 737-824 |
N87507 | 31637 | January 2008 | $ | 35,296,000 | $ | 48,900,000 | |||||||
Boeing 737-824 |
N76508 | 31638 | February 2008 | 35,296,000 | 49,000,000 | |||||||||
Boeing 737-824 |
N78509 | 31639 | February 2008 | 35,296,000 | 49,000,000 | |||||||||
Boeing 737-824 |
N77510 | 32828 | April 2008 | 35,296,000 | 49,200,000 | |||||||||
Boeing 737-824 |
N78511 | 33458 | May 2008 | 35,296,000 | 49,300,000 | |||||||||
Boeing 737-824 |
N87512 | 33459 | May 2008 | 35,296,000 | 49,300,000 | |||||||||
Boeing 737-824 |
N87513 | 31621 | June 2008 | 35,296,000 | 49,400,000 | |||||||||
Boeing 737-824 |
N76514 | 31626 | July 2008 | 35,296,000 | 49,500,000 | |||||||||
Boeing 737-824 |
N76515 | 37096 | August 2008 | 35,296,000 | 49,600,000 | |||||||||
Boeing 737-824 |
N76516 | 31623 | August 2008 | 35,296,000 | 49,600,000 | |||||||||
Boeing 737-824 |
N76517 | 31628 | September 2008 | 35,296,000 | 49,700,000 | |||||||||
Boeing 737-824 |
N77518 | 31605 | November 2008 | 35,296,000 | 49,900,000 | |||||||||
Boeing 737-924ER |
N37413 | 31664 | January 2008 | 40,181,000 | 55,810,000 | |||||||||
Boeing 737-924ER |
N47414 | 32827 | January 2008 | 40,181,000 | 55,810,000 | |||||||||
Boeing 737-924ER |
N39415 | 32826 | February 2008 | 40,181,000 | 55,909,000 | |||||||||
Boeing 737-924ER |
N39416 | 37093 | February 2008 | 40,181,000 | 55,909,000 | |||||||||
Boeing 737-924ER |
N38417 | 31665 | March 2008 | 40,181,000 | 56,000,000 | |||||||||
Boeing 737-924ER |
N39418 | 31666 | March 2008 | 40,181,000 | 56,000,000 | |||||||||
Boeing 737-924ER |
N37419 | 33456 | March 2008 | 40,181,000 | 56,000,000 | |||||||||
Boeing 737-924ER |
N37420 | 33457 | April 2008 | 40,181,000 | 56,092,000 | |||||||||
Boeing 737-924ER |
N27421 | 37094 | April 2008 | 40,181,000 | 56,092,000 | |||||||||
Boeing 737-924ER |
N37422 | 31620 | May 2008 | 40,181,000 | 56,184,000 | |||||||||
Boeing 737-924ER |
N39423 | 32829 | June 2008 | 40,181,000 | 56,273,000 | |||||||||
Boeing 737-924ER |
N38424 | 33460 | June 2008 | 40,181,000 | 56,273,000 | |||||||||
Boeing 737-924ER |
N75425 | 37095 | June 2008 | 40,181,000 | 56,273,000 | |||||||||
Boeing 737-924ER |
N75426 | 31622 | July 2008 | 40,181,000 | 56,365,000 | |||||||||
Boeing 737-924ER |
N37427 | 37097 | September 2008 | 40,181,000 | 56,550,000 | |||||||||
Boeing 737-924ER |
N75428 | 30130 | October 2008 | 40,181,000 | 56,642,000 | |||||||||
Boeing 737-924ER |
N75429 | 31633 | December 2008 | 40,181,000 | 56,825,000 | |||||||||
Boeing 737-924ER |
N77430 | 37098 | December 2008 | 40,181,000 | 56,825,000 | |||||||||
| (1) | The appraised base value of each Aircraft set forth above is the lesser of the average and median values of such Aircraft as appraised by three independent appraisal and consulting firms, projected as of the scheduled delivery month of each Aircraft. These appraisals are based upon varying assumptions and methodologies. An appraisal is only an estimate of value and should not be relied upon as a measure of realizable value. See “Risk Factors—Risk Factors Relating to the Certificates and the Offering—The Appraisals Are Only Estimates of Aircraft Value” in the Supplement. The appraised value of each of the other Boeing 737-824 and 737-924ER aircraft that Continental may choose to finance pursuant to this offering is equal to or higher than the appraised value of each of the Aircraft of the same model listed above. See “Description of the Aircraft and the Appraisals—The Appraisals” in the Supplement. |
3
Loan to Aircraft Value Ratios
The following table sets forth loan to Aircraft value ratios (“LTVs”) for each Class of
Certificates as of April 19, 2009 (the first Regular Distribution Date that occurs after all
Aircraft assumed to be financed in this Offering are scheduled to have been delivered) and each
Regular Distribution Date thereafter. The LTVs for any Class of Certificates for the period prior
to April 19, 2009 are not meaningful, since during such period all of the Equipment Notes expected
to be acquired by the Trusts and the related Aircraft will not be included in the calculation. The
table should not be considered a forecast or prediction of expected or likely LTVs but simply a
mathematical calculation based on one set of assumptions. See “Risk Factors—Risk Factors Relating
to the Certificates and the Offering—Appraisals and Realizable Value of Aircraft” in the
Supplement.
| Assumed | ||||||||||||||||||||||
| Aggregate | Outstanding Balance (2) | LTV(3) | ||||||||||||||||||||
| Regular | Aircraft | Class A | Class B | Class C | Class A | Class B | Class C | |||||||||||||||
| Distribution Date | Value(1) | Certificates | Certificates | Certificates | Certificates | Certificates | Certificates | |||||||||||||||
April 19, 2009 |
$ | 1,568,874,300 | $ | 756,762,000 | $ | 221,850,000 | $ | 168,198,000 | 48.2% | 62.4% | 73.1% | |||||||||||
October 19, 2009 |
1,551,289,440 | 756,762,000 | 221,850,000 | 168,198,000 | 48.8 | 63.1 | 73.9 | |||||||||||||||
April 19, 2010 |
1,520,747,340 | 743,360,009 | 219,920,115 | 148,867,500 | 48.9 | 63.3 | 73.1 | |||||||||||||||
October 19, 2010 |
1,503,162,480 | 729,988,736 | 217,919,896 | 129,737,849 | 48.6 | 63.1 | 71.7 | |||||||||||||||
April 19, 2011 |
1,472,620,380 | 716,666,409 | 215,870,732 | 110,793,416 | 48.7 | 63.3 | 70.8 | |||||||||||||||
October 19, 2011 |
1,455,035,520 | 703,393,027 | 213,772,623 | 92,010,996 | 48.3 | 63.0 | 69.4 | |||||||||||||||
April 19, 2012 |
1,424,493,420 | 690,168,590 | 211,625,569 | 73,372,415 | 48.5 | 63.3 | 68.5 | |||||||||||||||
October 19, 2012 |
1,406,908,560 | 676,993,099 | 209,429,569 | 54,863,067 | 48.1 | 63.0 | 66.9 | |||||||||||||||
April 19, 2013 |
1,376,366,460 | 663,866,552 | 207,184,625 | 36,470,967 | 48.2 | 63.3 | 65.9 | |||||||||||||||
October 19, 2013 |
1,358,781,600 | 650,788,951 | 204,890,735 | 18,186,105 | 47.9 | 63.0 | 64.3 | |||||||||||||||
April 19, 2014 |
1,328,239,500 | 637,760,295 | 202,547,899 | 0 | 48.0 | 63.3 | N/A | |||||||||||||||
October 19, 2014 |
1,310,654,640 | 624,780,585 | 200,156,119 | 0 | 47.7 | 62.9 | N/A | |||||||||||||||
April 19, 2015 |
1,280,112,540 | 611,849,820 | 197,715,393 | 0 | 47.8 | 63.2 | N/A | |||||||||||||||
October 19, 2015 |
1,262,527,680 | 598,131,283 | 162,055,583 | 0 | 47.4 | 60.2 | N/A | |||||||||||||||
April 19, 2016 |
1,231,985,580 | 584,494,081 | 133,176,207 | 0 | 47.4 | 58.3 | N/A | |||||||||||||||
October 19, 2016 |
1,214,400,720 | 570,938,213 | 109,511,844 | 0 | 47.0 | 56.0 | N/A | |||||||||||||||
April 19, 2017 |
1,183,858,620 | 557,463,679 | 89,915,632 | 0 | 47.1 | 54.7 | N/A | |||||||||||||||
October 19, 2017 |
1,166,273,760 | 544,070,480 | 73,533,539 | 0 | 46.7 | 53.0 | N/A | |||||||||||||||
April 19, 2018 |
1,135,731,660 | 530,758,614 | 59,720,179 | 0 | 46.7 | 52.0 | N/A | |||||||||||||||
October 19, 2018 |
1,118,146,800 | 517,528,083 | 47,981,302 | 0 | 46.3 | 50.6 | N/A | |||||||||||||||
April 19, 2019 |
1,087,604,700 | 504,378,887 | 37,933,787 | 0 | 46.4 | 49.9 | N/A | |||||||||||||||
October 19, 2019 |
1,070,019,840 | 489,783,518 | 29,277,349 | 0 | 45.8 | 48.5 | N/A | |||||||||||||||
April 19, 2020 |
1,039,477,740 | 459,459,463 | 21,774,225 | 0 | 44.2 | 46.3 | N/A | |||||||||||||||
October 19, 2020 |
1,021,892,880 | 392,590,109 | 15,234,387 | 0 | 38.4 | 39.9 | N/A | |||||||||||||||
April 19, 2021 |
991,350,780 | 271,590,366 | 9,504,638 | 0 | 27.4 | 28.4 | N/A | |||||||||||||||
October 19, 2021 |
973,765,920 | 113,669,889 | 4,460,485 | 0 | 11.7 | 12.1 | N/A | |||||||||||||||
April 19, 2022 |
943,223,820 | 0 | 0 | 0 | N/A | N/A | N/A | |||||||||||||||
| (1) | We have assumed that the initial appraised value of each Aircraft, determined as described under “—Equipment Notes and the Aircraft” above, declines by approximately 3% per year after the delivery of such Aircraft. Other rates or methods of depreciation may result in materially different LTVs. We cannot assure you that the depreciation rate and method used for purposes of the table will occur or predict the actual future value of any Aircraft. See “Risk Factors—Risk Factors Relating to the Certificates and the Offering—The Appraisals Are Only Estimates of Aircraft Value” in the Supplement. | |
| (2) | In calculating the outstanding balances of each Class of Certificates, we have assumed that the Trusts will acquire the Equipment Notes for all Aircraft. Outstanding balances as of each Distribution Date are shown after giving effect to distributions expected to be made on such distribution date. | |
| (3) | The LTVs for each Class of Certificates were obtained for each Regular Distribution Date by dividing (i) the expected outstanding balance of such Class together with the expected outstanding balance of each other Class senior in right of payment to such Class after giving effect to the distributions expected to be made on such date, by (ii) the assumed value of all of the Aircraft on such date based on the assumptions described above. For the purposes of these calculations it has been assumed that the first 12 Boeing 737-824 aircraft of the 15 Boeing 737-824 aircraft and the first 18 Boeing 737-924ER aircraft of the 24 Boeing 737-924ER aircraft from which Continental may choose are financed hereunder. The outstanding balances and LTVs of each Class of Certificates will change if the Trusts do not acquire Equipment Notes with respect to all the Aircraft. The LTVs will change if the Trusts acquire Equipment Notes with respect to the other aircraft from which Continental may choose. |
4
Assumed Amortization Schedule and resulting Pool Factors:
The following table sets forth the expected aggregate principal amortization schedule for the
Equipment Notes held in each Trust (the “Assumed Amortization Schedule”) and resulting Pool Factors
with respect to such Trust. The scheduled distribution of principal payments for any Trust would
be affected if Equipment Notes with respect to any Aircraft are not acquired by such Trust, if any
Equipment Notes held in such Trust are redeemed or purchased or if a default in payment on such
Equipment Notes occurs. Accordingly, the aggregate principal amortization schedule applicable to a
Trust and the resulting Pool Factors may differ from those set forth in the following table.
| Class A | Class B | Class C | ||||||||||||||||
| Scheduled Principal | Expected | Scheduled Principal | Expected | Scheduled Principal | Expected | |||||||||||||
| Date | Payments | Pool Factor | Payments | Pool Factor | Payments | Pool Factor | ||||||||||||
Issuance Date |
$ | 0.00 | 1.0000000 | $ | 0.00 | 1.0000000 | $ | 0.00 | 1.0000000 | |||||||||
October 19, 2007 |
0.00 | 1.0000000 | 0.00 | 1.0000000 | 0.00 | 1.0000000 | ||||||||||||
April 19, 2008 |
0.00 | 1.0000000 | 0.00 | 1.0000000 | 0.00 | 1.0000000 | ||||||||||||
October 19, 2008 |
0.00 | 1.0000000 | 0.00 | 1.0000000 | 0.00 | 1.0000000 | ||||||||||||
April 19, 2009 |
0.00 | 1.0000000 | 0.00 | 1.0000000 | 0.00 | 1.0000000 | ||||||||||||
October 19, 2009 |
0.00 | 1.0000000 | 0.00 | 1.0000000 | 0.00 | 1.0000000 | ||||||||||||
April 19, 2010 |
13,401,991.20 | 0.9822903 | 1,929,885.06 | 0.9913009 | 19,330,499.86 | 0.8850730 | ||||||||||||
October 19, 2010 |
13,371,272.52 | 0.9646213 | 2,000,218.62 | 0.9822849 | 19,129,651.62 | 0.7713400 | ||||||||||||
April 19, 2011 |
13,322,327.28 | 0.9470169 | 2,049,163.86 | 0.9730482 | 18,944,432.59 | 0.6587083 | ||||||||||||
October 19, 2011 |
13,273,382.04 | 0.9294772 | 2,098,109.10 | 0.9635908 | 18,782,420.28 | 0.5470398 | ||||||||||||
April 19, 2012 |
13,224,436.68 | 0.9120022 | 2,147,054.34 | 0.9539129 | 18,638,581.14 | 0.4362264 | ||||||||||||
October 19, 2012 |
13,175,491.56 | 0.8945918 | 2,195,999.58 | 0.9440143 | 18,509,347.26 | 0.3261814 | ||||||||||||
April 19, 2013 |
13,126,546.32 | 0.8772462 | 2,244,944.82 | 0.9338951 | 18,392,100.35 | 0.2168335 | ||||||||||||
October 19, 2013 |
13,077,601.08 | 0.8599652 | 2,293,890.06 | 0.9235553 | 18,284,862.24 | 0.1081232 | ||||||||||||
April 19, 2014 |
13,028,655.84 | 0.8427488 | 2,342,835.30 | 0.9129948 | 18,186,104.66 | 0.0000000 | ||||||||||||
October 19, 2014 |
12,979,710.60 | 0.8255972 | 2,391,780.54 | 0.9022137 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2015 |
12,930,765.36 | 0.8085102 | 2,440,725.78 | 0.8912120 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2015 |
13,718,536.50 | 0.7903823 | 35,659,809.66 | 0.7304737 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2016 |
13,637,202.24 | 0.7723618 | 28,879,376.22 | 0.6002984 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2016 |
13,555,867.98 | 0.7544488 | 23,664,362.88 | 0.4936301 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2017 |
13,474,533.72 | 0.7366433 | 19,596,212.16 | 0.4052992 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2017 |
13,393,199.46 | 0.7189453 | 16,382,093.22 | 0.3314561 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2018 |
13,311,865.20 | 0.7013547 | 13,813,360.26 | 0.2691917 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2018 |
13,230,530.94 | 0.6838717 | 11,738,876.94 | 0.2162781 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2019 |
13,149,196.68 | 0.6664961 | 10,047,514.62 | 0.1709884 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2019 |
14,595,369.06 | 0.6472094 | 8,656,437.54 | 0.1319691 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2020 |
30,324,055.14 | 0.6071387 | 7,503,123.96 | 0.0981484 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2020 |
66,869,353.62 | 0.5187762 | 6,539,838.78 | 0.0686698 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2021 |
120,999,742.86 | 0.3588848 | 5,729,748.84 | 0.0428426 | 0.00 | 0.0000000 | ||||||||||||
October 19, 2021 |
157,920,477.48 | 0.1502056 | 5,044,153.02 | 0.0201059 | 0.00 | 0.0000000 | ||||||||||||
April 19, 2022 |
113,669,888.64 | 0.0000000 | 4,460,484.84 | 0.0000000 | 0.00 | 0.0000000 | ||||||||||||
Additional Information
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
Morgan Stanley toll-free 1-866-718-1649 (institutional investors)