By Mary-Katherine Stinson
Lexington, Ky., Dec. 23 – GOL Linhas Aereas Inteligentes SA announced that its subsidiary GOL Finance issued about $200 million of 5% senior secured amortizing notes due 2026 series A and 3% subordinated secured amortizing notes due 2025 series B, according to a notice.
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.
They have an average cost of capital to GOL of 4.3% per year.
The notes are callable by GOL at any time at par and are secured by a fiduciary sale assignment independently appraised at a total value of R$3 billion.
The airline is based in Sao Paulo.
| Issuer: | GOL Finance
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| Guarantors: | GOL Linhas Aereas Inteligentes SA and GOL Linhas Aereas SA
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| Amount: | $200 million
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| Price: | Par
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| Call features: | Anytime at par
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| Series A
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| Issue: | Senior secured amortizing notes
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| Maturity: | 2026
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| Coupon: | 5%
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| Series B
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| Issue: | Subordinated secured amortizing notes
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| Maturity: | 2025
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| Coupon: | 3%
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