Brazil’s GOL Linhas Aereas refinances R$1.2 billion short-term debt

By Rebecca Melvin

Concord, N.H., Sept. 17 – GOL Linhas Aereas Inteligentes SA announced that GLA Linhas Aereas SA, an operating unit of the company, has refinanced R$1.2 billion of short-term debt, extending the average tenor of its liabilities by two years to 2024, according to a company news release.

Through the program, conducted over a 12-month period ended June 2021, the company was able to reduce short-term debt by R$2.1 billion to R$0.5 billion, its lowest level since 2014.

Specifically, the program included amortization of its $300 million term loan B, issuance of $500 million of senior secured notes due 2026, a R$423 million equity capital increase led by its controlling shareholder, and acquisition of the minority interest in its Smiles loyalty program.

The proceeds of the refinancing included: R$592 million applied to the remaining balance of its seventh issue of debentures, R$528 million of export financing lines, and R$165 million of working capital credit lines.

The latest refinancing was conducted by a syndicate of local banks in Brazil and is subject to final approvals.

The airline is based in Sao Paulo.

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