Brazil-based GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has announced the execution of sale and leaseback agreements of 11 Boeing 737 Next Generation (NG) aircraft with Carlyle Aviation to accelerate GOL´s fleet renewal and balance sheet deleveraging, the company said.
GOL said it intends to replace these NGs with Boeing 737 MAX-8 aircraft over the next few years.
The sale of these 11 aircraft will reduce GOL´s net debt by approximately BRL 500 million, comprised of a BRL 130 million reduction in finance lease debt and a BRL 370 million increase in cash liquidity.
The company plans to use a portion of these proceeds to call the outstanding amount of its 8.875% Senior Notes due in 2022. The asset management income and reduction in interest expense will contribute over BRL 420 million to the Company´s 2020 earnings and improve GOL´s credit ratios by reducing the net debt/EBITDA ratio by 0.2x and increasing the EBITDA/net interest expense ratio by 0.5x.
GOL Linhas Aéreas Inteligentes S.A. serves more than 36 million passengers annually with more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States.