Brazil’s GOL Finance to issue about $200 million 3%, 5% notes to aircraft lessors

By Wendy Van Sickle

Columbus, Ohio, Dec. 22 – GOL Linhas Aereas Inteligentes SA announced that its GOL Finance subsidiary has agreed to issue about $200 million of 5% senior secured amortizing notes due 2026 and 3% subordinated secured amortizing notes due 2025.

The notes are guaranteed by the parent and GOL Linhas Aereas SA.

The notes are being issued in exchange for full satisfaction of certain aircraft leasing payment obligations that are under deferral agreements, among other obligations that the participating aircraft lessors chose to exchange for notes.

They will have on average a 12-month grace period. Following the grace period, the 2026 notes will amortize in 10 equal quarterly installments and the 2025 notes will amortize in nine equal quarterly installments and will be contractually subordinated to the 2026 notes. The notes are callable by GOL at any time at par and are secured by a fiduciary sale assignment.

The airline is based in Sao Paulo.

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