GOL sees robust market in 2011

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Gol Linhas Aereas expects domestic air travel demand to rise to 15% this year due to a healthy Brazilian market, the airline said in a regulatory filing released today.

To accommodate a growing market, the airline plans to add four new aircraft during the year, increasing its fleet size to to 115.

Separately, GOL is facing a debt maturity this year. The carrier's VRG Linhas Aéreas third series of secured non-convertible debentures, which was issued in 2009, is maturing in May.

The Brazilian carrier has raised $400 million reais through the issuance, secured by up to 250 million reais in receivables. The debentures pay 126.5% of the Brazilian CDI rate and are amortized in 18 consecutive monthly payments, with a 6-month grace period. BB Banco de Investimento was the lead manager of the transaction.

The carrier will then have none of its other outstanding debt facilities before mid-2012.

A reais-dominated BNDES facility at TJLP + 265 basis points matures in July 2012. As at 29 November, GOL had drawn 37.4 million reais this year. In 2011, it will draw 9.8 million reais from the facility while drawdown plans for 2012, 2013 and 2014 anticipates 37.3 million reais, 28.9 million reais and 14.2 million reais, respectively.

In July 2013, a dollar-denominated IFC loan is maturing. It was signed at Libor + 187.5 basis points. In 2010, 42.4 million reais was drawn from the facility.