GOL has announced the initial distribution of the fourth issue of simple, non-convertible debentures of VRG Linhas Aéreas, with restricted placement efforts, to raise R$600 million ($356.2 million).
"This operation is in line with GOL's objective of continuing to extend the profile of its debt and deleverage its balance sheet in a consistent manner," comments Leonardo Pereira, GOL's vice-president and CFO.
The proceeds will be used to pre-pay the remaining R$378 million balance from VRG Linhas Aéreas third debenture issue of May 2009. The remainder will be used to finance working capital and pay suppliers.
The debentures will yield 118.00% of the CDI interbank rate. The principal will be amortized in September 2015 with interest payments every six months.
BB Banco de Investimento is the lead manager, Bradesco BBI is the manager while Planner Trustee DTVM is the trustee.
At the end of the second quarter of fiscal 2010, Gol's cash, cash equivalents and short-term investments totalled R$1.84 billion, equivalent to 24.7% of annual net revenues, up 1.4% from the previous quarter. Net debt was R$1.68 billion, down from R$1,740.0 million at the end of the previous quarter.