GOL Issues Secured Amortizing Notes

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes S.A. (GOL) announced the issuance of US$196 million in senior secured amortizing notes due in 2026 and subordinated secured notes due in 2025. These notes carry an average cost of capital of 4.3% p.a. and are secured by unencumbered receivables valued at R$3.0 billion. The issuance aims to fulfill aircraft leasing obligations and includes a 12-month grace period for repayments. GOL continues to lead Brazil's airline sector, focusing on providing an exceptional travel experience for its customers.

Positive

• Securing US$196 million in financing enhances liquidity and reduces immediate financial obligations.
• Notes are backed by R$3.0 billion in unencumbered receivables, strengthening the financial position.

Negative

• None.

SÃO PAULO, Dec. 30, 2022 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4) ("GOL" or "Company" or "GLAI"), Brazil's largest airline, announces that its subsidiary GOL Finance, a public limited liability company (société anonyme) organized under the laws of Luxembourg, has issued 5.00% senior secured amortizing notes due 2026 (Series A) and 3.00% subordinated secured amortizing notes due 2025 (Series B) in an aggregate amount of US$196 million. The Notes are guaranteed by GLAI and GOL Linhas Aéreas S.A. ("GLA"), and have an average cost of capital to GOL of 4.3% p.a.

The Notes were issued in exchange for full satisfaction, at 100% of face value, of certain aircraft leasing payment obligations that are under deferral agreements, among other obligations that the participating aircraft lessors chose to exchange for Notes.

The Notes have on average a 12-month grace period. Following the grace period, the Series A Notes amortizes in ten equal quarterly installments and the Series B Notes amortizes in nine equal quarterly installments and will be contractually subordinated to the Series A Notes. The Notes are callable by GOL at any time at par and are secured by a fiduciary sale assignment of unencumbered receivables (independently appraised at an aggregate value of R$3.0 billion).

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

About GOL Linhas Aéreas Inteligentes S.A. ("GOL")
GOL is the largest airline in Brazil, leader in the corporate and leisure segments. Since founded in 2001, the Company has the lowest unit cost in Latin America, thus democratizing air transportation. The Company has alliances with American Airlines and Air FranceKLM and makes available several codeshares and interline agreements available to Customers, bringing more convenience and simple connections to any place served by these partnerships. With the purpose of "Being the First for All", GOL offers the best travel experience to its passengers, including: the largest number of seats and more space between seats; the greatest platform with internet, movies and live TV; and the best frequent-flyer program, SMILES. In cargo transportation, GOLLOG delivers orders to different regions in Brazil and abroad. The Company has a team of 14,000 highly qualified aviation professionals focused on Safety, GOL's #1 value, and operates a standardized fleet of 145 Boeing 737 aircraft. The Company's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, go to www.voegol.com.br/ri.

The Notes and guarantees have not been and will not be registered under the Securities Act and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption form, or in a transaction not subject to, the registration requirements of the Securities Act.

View original content:https://www.prnewswire.com/news-releases/gol-issues-secured-amortizing-notes-301711604.html

SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is the recent financial move by GOL Linhas Aéreas Inteligentes S.A.?

GOL issued US$196 million in senior secured and subordinated amortizing notes to fulfill aircraft leasing obligations.

What is the average cost of capital for GOL's recent notes issuance?

The average cost of capital for the issued notes is 4.3% per annum.

What are the due dates for GOL's newly issued notes?

The senior secured notes are due in 2026, and the subordinated notes are due in 2025.

How much are GOL's notes secured by in unencumbered receivables?

The notes are secured by unencumbered receivables valued at R$3.0 billion.

What is the purpose of the notes issued by GOL?

The notes were issued to satisfy aircraft leasing payment obligations and other obligations.