GOL Linhas AÃ©reas Inteligentes S.A. (BM&FBOVESPA: GOLL4 and NYSE: GOL) has begun the final phase of the comprehensive restructuring plan begun in mid-2015, the company said.
This phase includes the restructuring of up to USD780mm of unsecured bonds issued in the international capital markets. GOL´s USD unsecured bondholders now have the opportunity to exchange their securities for new secured bonds at a premium to their current market value. The USD unsecured bonds are the last major group to be approached in GOL´s comprehensive financial restructuring.
On May 3, 2016, GOL began the final component of its restructuring plan. This component, which is the restructuring of USD780 million of its outstanding USD bonds, is an important transaction for the Company.
In mid-2015, GOL began its comprehensive restructuring plan, addressing over RUSD17 billion of debt and other obligations, with a shareholder equity infusion of USD150 million: raising USD100 million from its controlling shareholders, who maintained their equity stake at 63 percent, and USD50 million from GOL´s strategic partner, Delta Airlines, which increased its equity stake to 9.5 percent.
Delta Airlines contributed additionally to GOL´s plan by providing a guarantee of a USD300 million Term Loan to further aid in GOL´s restructuring plan. During 2015, GOL´s suppliers contributed with better terms, producing RUSD300 million of annual cash savings to the Company.
GOL´s restructuring has continued to progress in 2016. Aircraft partner Boeing agreed to give the Company delivery flexibility, resulting in up to RUSD550 million in cash flow to help fund the exchange offer.