PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
Jd. Aeroporto
04630-000 São Paulo, São Paulo
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
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registrant in connection with Rule 12g3-2(b):
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GOL Liability Management and Deleveraging Process Continues with Debenture Amortization and New Issuance |
São Paulo, October 29, 2018 - GOL Linhas Aéreas Inteligentes S.A. (“GOL” or “Company”), (NYSE: GOL and B3: GOLL4), Brazil’s premiere airline, announced today that it has successfully completed a liability management exercise targeting the debentures issued by its wholly owned subsidiary GOL Linhas Aéreas S.A. (“GLA”).
GLA fully amortized its outstanding 6th series of debentures – that paid a coupon of 132 percent of the Brazilian CDI interbank rate – in the total amount of R$1.025 billion and issued a new single series of non-convertible and unsecured debentures in the amount of R$ 887.5 million, resulting in a net indebtedness reduction of R$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 R$17 million and semi-annual principal payments of approximately R$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 with restricted placement efforts, pursuant to Instruction 476 of January 16, 2009 issued by the Brazilian Securities and Exchange Commission (“CVM”), as amended. The issuance was approved in a Directors Meeting held on October 11, 2018, with the grant of corporate guarantee in favor of GLA.
"This transaction represents further deleveraging of GOL’s balance sheet and better matches GLA’s operating cash flow generation with the amortization of its liabilities,” said Richard Lark, GOL’s CFO. “The issuance reduces the Company's cost of debt and improve its credit metrics.”
Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55 (11) 2128-4700
About GOL Linhas Aéreas Inteligentes S.A.
GOL serves more than 30 million passengers annually. With Brazil’s largest network, GOL offers customers more than 700 daily flights to 67 destinations in 10 countries in South America and the Caribbean. GOLLOG is a leading cargo transportation and logistics business serving more than 3,400 Brazilian municipalities and, through partners, more than 200 international destinations in 95 countries. SMILES is one of the largest coalition loyalty programs in Latin America, with over 14 million registered participants, allowing clients to accumulate miles and redeem tickets for more than 700 locations worldwide. Headquartered in São Paulo, GOL has a team of more than 15,000 highly skilled aviation professionals and operates a fleet of 120 Boeing 737 aircraft, with a further 135 Boeing 737 MAX on order, delivering Brazil's top on-time performance and an industry leading 17 year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.
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GOL Linhas Aéreas Inteligentes S.A. |
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GOL LINHAS AÉREAS INTELIGENTES S.A. | ||
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By: |
/S/ Richard Freeman Lark Junior | |
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Name: Richard Freeman Lark Junior
Title: Investor Relations Officer | ||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.