GOL Finance Prices International Offering of US$ 150 Million

Rhea-AI Summary

On September 23, 2021, GOL Linhas Aéreas Inteligentes (NYSE: GOL) announced that its subsidiary, GOL Finance, has priced a US$150 million reopening of its 8.000% senior secured notes due 2026. This issuance will consolidate with previously issued notes totaling US$500 million. The additional notes have an issue price of 100.750%, offering a 7.728% yield to maturity, rated B2 by Moody's. Proceeds will be used for general corporate purposes, including aircraft acquisitions. The notes remain unregistered under the U.S. Securities Act.

Positive

• Successful pricing of US$150 million additional senior secured notes due 2026.
• Consolidation with existing notes enhances capital structure.
• 7.728% yield to maturity is attractive for investors.

Negative

• None.

SÃO PAULO, Sept. 23, 2021 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4) ("GOL"), Brazil's largest airline, announces that its subsidiary GOL Finance, a public limited liability company (société anonyme) organized under the laws of Luxembourg, has priced a US$150.0 million reopening of its 8.000% senior secured notes due 2026 (the "additional notes"), as a further issuance of and to be consolidated and form a single fungible series with GOL Finance's US$200.0 million and US$300.0 million in aggregate principal amount of 8.000% senior secured notes due 2026 issued on December 23, 2020 and May 11, 2021, respectively (together with the additional notes, the "notes"). The issue price of the additional notes is 100.750%, representing a 7.728% yield to maturity. Moody's assigned the notes a rating of B2.

Purchasers of the additional notes will be required to pay accrued interest from, and including, June 30, 2021 up to, but excluding, the date the additional notes are delivered, which we expect will be September 28, 2021.

The notes will mature on June 30, 2026, be callable by GOL on and after December 24, 2022 and be secured by fiduciary assignments of (i) substantially all of GOL's intellectual property, including patents, trademarks, brand names and domain names, and (ii) aircraft spare parts located in Brazil.

The collateral securing the notes, together with certain other eligible collateral that may be added to the collateral package by GOL, is available to serve as collateral for other GOL issuances of secured indebtedness or secured exchangeable indebtedness under GOL's secured debt issuance program, which is designed to complement GOL's senior unsecured bond issuances and to make GOL's capital structure more efficient and diverse.

GOL intends to use the proceeds from the offering of the additional notes for general corporate purposes, including opportunistic aircraft acquisitions and working capital.

The notes and related guarantees have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and they will only be offered or sold to (i) qualified institutional buyers (as defined in Rule 144A under the Securities Act) and (ii) outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

GOL Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55 (11) 2128-4700

Media Relations
Becky Nye, Montieth & Company 
bnye@montiethco.com 

About GOL Linhas Aéreas Inteligentes S.A. ("GOL")
GOL is Brazil's largest airline, leader in the corporate and leisure segments. Since its founding in 2001, it has been the airline with the lowest unit cost in Latin America, which has enabled the democratization of air transportation. GOL has a strategic alliance with American Airlines and Air France-KLM, in addition to making available to customers many codeshare and interline agreements, bringing more convenience and ease of connections to any place served by these partnerships. With the purpose of "Being First for Everyone", GOL offers the best travel experience to its passengers, including: the largest inventory of seats and the most legroom; the most complete platform with internet, movies and live TV; and the best loyalty program, SMILES. In cargo transportation, GOLLOG delivers parcels to various regions in Brazil and abroad. GOL has a team of 15,000 highly qualified airline professionals focused on safety, GOL's number one value, and operates a standardized fleet of 127 Boeing 737 aircraft. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.

Disclaimer 
This press release contains forward-looking statements that are based exclusively on the expectations of GOL's management. Such forward-looking statements depend substantially on external factors, in addition to the risks disclosed in GOL's filed disclosure documents and are, therefore, subject to change without prior notice.

View original content:https://www.prnewswire.com/news-releases/gol-finance-prices-international-offering-of-us-150-million-301384517.html

SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is the significance of GOL's US$150 million note offering?

The offering strengthens GOL's capital structure and provides funds for corporate purposes.

When will GOL's additional notes mature?

The additional notes will mature on June 30, 2026.

What is the yield on GOL's reopened notes?

The yield on the reopened notes is 7.728%.

Who rated GOL's additional notes?

Moody's assigned a B2 rating to GOL's additional notes.

What will GOL use the proceeds from the notes for?

Proceeds will be used for general corporate purposes, including aircraft acquisitions.