Continental Airlines will receive a $413 million initial payment from an updated co-brand credit card deal with Chase Bank USA, the airline disclosed today in a filing with the U.S. Securities and Exchange Commission. Continental's agreement with Chase extends its co-branded credit card deal through the end of 2016. Of Chase's initial payment to Continental, $235 million relates to Chase's advance purchase of frequent-flyer mileage credits, and the two parties consider part of that advance purchase a loan to Continental, according to the SEC filing. Houston-based Continental will report the loan in its financial filings as a long-term debt, a debt that will begin decreasing in 2016 based on mileage credits flyers redeem. Continental says in the filing it expects to have access to between $3.2 billion and $3.3 billion at the end of the second quarter in the form of unrestricted cash and short-term investment balances. The extra cash could come in handy for severance pay and other restructuring costs. Continental in July plans to cut 6.5% of its employees and 11% of its domestic flight capacity.

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