Texas Air plans to buy the rest of Continental.

The company proposed to buy the 19% of Continental Airlines stock that it does not already own by exchanging each Continental share for a new issue of Texas Air 10-year subordinated notes with a face value of $14.50 and an annual interest rate of 14.5%. The proposal is subject to approval by Continental’s directors and shareholders, Texas Air Corp. said. Texas Air also has agreed to purchase Trans World Airlines for $925 million and has an agreement to buy the 30% of New York Air that it does not own.