GOL completes refinancing R$1.2 Billion of short-term debt

posted on 26th October 2021 by Eddie Saunders
GOL completes refinancing R$1.2 Billion of short-term debt

GOL Linhas Aéreas Inteligentes S.A., Brazil’s largest airline, announces that it has completed the previously informed refinancing of its short-term bank debt in the amount of R$1.2 billion, via the extension of the 7th Series of Debentures and issuance of the 8th Series of Simple Non-Convertible Debentures by GLA Linhas Aéreas S.A., an operating unit of the Company.

The transaction was led by a syndicate of banks comprised of UBS BB S.A., Bradesco BBI S.A. and Santander S.A. (“Banks”) in accordance with CVM Instruction 476.

“Completing the refinancing of R$1.2 billion of short-term debt, and the subsequent conclusion of our liability management program, could not have come at a better time,” stated Richard Lark, CFO.

“Our balance sheet is now in a stronger position in terms of its outstanding debts, versus our peers, which we view to be a competitive advantage in the current market environment.”

As noted by the Company on the announcement of the terms and conditions for the refinancing in September 2021, the issuance of these Debentures concludes GOL’s liability management program and returns the Company to its lowest level of short-term bank debt since 2014, with approximately R$0.5 billion.

The value extraction from GOL’s assets contributed to a reduction of R$3.3 billion of its short-term financial debt in the 19-month period ended in September 2021.

The Company’s lease liability remained at approximately 46% of total indebtedness during the same period, with a stable IFRS16 discount rate.

The proceeds from the Debentures will be used in full to refinance the Company’s short-term debt and extend the average tenor of its liabilities to 3.3 years, an increase of more than two years.