GOL Linhas talks $300 million five-year exchangeable notes to yield 3.75%-4.25%, up 30%-40%

By Abigail W. Adams

Portland, Me., March 14 – GOL Linhas Aereas Inteligentes SA plans to price $300 million of five-year exchangeable notes after the market close on March 25 with price talk for a coupon of 3.75% to 4.25% and an initial conversion premium of 30% to 40%, according to a market source.

BofA Merrill Lynch, Morgan Stanley and Evercore ISI are joint global coordinators for the Rule 144A and Regulation S deal, which carries a greenshoe of $45 million.

BTG Pactual, Deutsche Bank Securities, Credit Agricole, BCP Securities, Nomura, Bradesco BBI, Santander, Buckingham Research Group and BB Securities are joint bookrunners.

The deal will be marketed on a roadshow through the United States, Europe, the United Arab Emirates, Singapore and Hong Kong prior to pricing.

The notes are exchangeable for GOL Linhas’ American Depositary Shares, which represent two preferred shares of the company.

The deal will price concurrently with a borrow facility for the company’s ADS.

Controlling shareholders will price up to 14 million ADS in a registered offering, which will be loaned to an initial purchaser of the notes, according to a company news release.

GOL Linhas will not receive proceeds from the sale of the ADS.

In connection with the pricing of the notes, the company will also enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

GOL Linhas is a Sao Paulo-based provider of airline services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.