GOL completes amortization of debentures issues by GLA

Brazilian airline GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has announced it has completed a liability management exercise targeting the debentures issued by its wholly owned subsidiary GOL Linhas Aéreas S.A. (“GLA”), the company said.

GLA fully amortized its outstanding 6th series of debentures, which paid a coupon of 132 percent of the Brazilian CDI interbank rate, in the total amount of BRL 1.025 billion and issued a new single series of non-convertible and unsecured debentures in the amount of BRL 887.5 million, resulting in a net indebtedness reduction of BRL 137.5 million.

The new debentures will yield 120 percent of the Brazilian CDI interbank rate (approximately 7.68 percent per annum in BRL), implying a 12 percent of CDI reduction in the cost of debt, with quarterly interest payments of approximately BRL 17 million and semi-annual principal payments of approximately BRL 148 million, with the final principal amortization to be made on September 28, 2021.

The debentures were issued through Banco do Brasil and Banco Bradesco via a public offering