Gol has issued R888 million ($241 million) in local-currency bonds, reducing its debt burden with lower-interest rate notes.

The bond priced at 120bps over the Brazilian CD rate, or a roughly 7.68% coupon, and matures in September 2021, the Sao Paulo-based carrier says in a statement.

Proceeds repay the R1.03 billion outstanding under its 6th series local debentures, which are priced at 132bps over the Brazilian CD rate.

Gol had R1.04 billion in local-currency bonds at the end of June, a quarterly financial statement shows. The debt matured in September 2019.

"This transaction represents further deleveraging of Gol's balance sheet and better matches [Gol's operating subsidiary]'s operating cash flow generation with the amortisation of its liabilities," says Richard Lark, chief financial officer of Gol. "The issuance reduces the company's cost of debt and improve its credit metrics."

Gol had R5.83 billion in long-term debt at the end of June.

Branco de Brasil and Banco Bradesco underwrote the issue.

Source: Cirium Dashboard