GOL Liability Management and Deleveraging Process Continues with Debenture Amortization and New Issuance
SAO PAULO, Oct. 29, 2018 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company"), (NYSE: GOL and B3: GOLL4), Brazil's premiere airline, announced today that it has successfully completed a liability management exercise targeting the debentures issued by its wholly owned subsidiary GOL Linhas Aéreas S.A. ("GLA").
GLA fully amortized its outstanding 6th series of debentures – that paid a coupon of 132 percent of the Brazilian CDI interbank rate – in the total amount of R$1.025 billion and issued a new single series of non-convertible and unsecured debentures in the amount of R$ 887.5 million, resulting in a net indebtedness reduction of R$137.5 million.
The new debentures will yield 120 percent of the Brazilian CDI interbank rate (approximately 7.68 percent per annum in BRL), implying a 12 percent of CDI reduction in the cost of debt, with quarterly interest payments of approximately R$17 million and semi-annual principal payments of approximately R$148 million, with the final principal amortization to be made on September 28, 2021.
The debentures were issued through Banco do Brasil and Banco Bradesco via a public offering with restricted placement efforts, pursuant to Instruction 476 of January 16, 2009 issued by the Brazilian Securities and Exchange Commission ("CVM"), as amended. The issuance was approved in a Directors Meeting held on October 11, 2018, with the grant of corporate guarantee in favor of GLA.
"This transaction represents further deleveraging of GOL's balance sheet and better matches GLA's operating cash flow generation with the amortization of its liabilities," said Richard Lark, GOL's CFO. "The issuance reduces the Company's cost of debt and improve its credit metrics."
Access the entire notice to the market on: www.voegol.com.br/ir
Contact: Investor Relations: [email protected], +55 (11) 2128-4700
SOURCE GOL Linhas Aéreas Inteligentes S.A.
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