By Reshmi Basu
New York, March 19 - Sao Paulo-based low-cost airline Gol Linhas Aereas Inteligentes sold a $225 million offering of 10-year bullet notes (Ba2//BB+) at 98.274 to yield 7¾%, according to a market source.
The deal came in line with guidance of a yield of 7¾%.
The notes will be non-callable. The issuer will also be able to exercise a make-whole call option at 50 basis points.
Morgan Stanley was the bookrunner for the Rule 144A and Regulation S with registration rights deal, which was issued via GOL Finance, a Cayman Islands-based subsidiary. Citigroup was joint lead-manager.
Proceeds will be used to finance the acquisition of aircraft, equipment and supply materials.
Gol and its subsidiary, Gol Transportes Aereos SA, will guarantee the notes.
On March 29, 2006, Gol sold a $200 million offering of perpetual senior unsecured bonds (Ba2) at par to yield 8¾%.
| Issuer: | Gol Finance
|
| Guarantors: | Gol Linhas Aereas, Gol Transportes Aereos SA
|
| Amount: | $225 million
|
| Issue: | Senior unsecured bullet notes
|
| Maturity: | April 3, 2017
|
| Coupon: | 7½%
|
| Issue price: | 98.274
|
| Yield: | 7¾%
|
| Spread: | Treasuries plus 318 bps
|
| Call option: | Make-whole call at 50 bps
|
| Bookrunner: | Morgan Stanley
|
| Lead joint manager: | Citigroup
|
| Pricing date: | March 19
|
| Settlement date: | March 22
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Ratings: | Moody's: Ba2
|
| Fitch: BB+
|
| Price guidance: | 7¾%
|
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