By Angela McDaniels
Tacoma, Wash., May 28 - VRG Linhas Aereas SA issued R$400 million of secured non-convertible debentures due May 13, 2011, according to a news release from controlling shareholder GOL Linhas Aereas Inteligentes SA.
The debentures pay 126.5% of the Brazilian CDI rate and will be amortized in 18 consecutive monthly payments beginning in the seventh month after the issue date.
The debentures are callable at any time.
BB Banco de Investimento SA was the lead manager.
This is the company's third series of secured non-convertible debentures.
The debentures are partially secured by the fiduciary sale of receivables and were distributed in Brazil only.
"This operation is part of the reconstruction of the company's cash position, aimed at achieving cash and cash equivalents of R$800 million by the close of 2009," GOL chief financial and investor relations officer Leonardo Pereira said in the release.
VRG is a Rio de Janeiro-based air carrier, and GOL is a low-cost airline based in Sao Paulo, Brazil.
| Issuer: | VRG Linhas Aereas SA
|
| Issue: | Secured non-convertible debentures
|
| Amount: | R$400 million
|
| Manager: | BB Banco de Investimento SA
|
| Maturity: | May 13, 2011
|
| Coupon: | 126.5% of the Brazilian CDI rate
|
| Price: | Par
|
| Yield: | 126.5% of the Brazilian CDI rate
|
| Call option: | At any time
|
| Announcement date: | May 27
|
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