SÃO PAULO, Oct. 18, 2019 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company"), (NYSE: GOL B3: GOLL4), Brazil's premier domestic airline, received the "2019 Americas Equity Deal of the Year" award from the Airline Economics Aviation 100 Awards, for the issuance of US$345 million in 3.75% Exchangeable Notes due 2024 and concurrent Equity Offering ("The GOL Convert"). The award was presented at the InterContinental Barclay in New York, and is considered one of the most prestigious in the global capital markets.
The GOL Convert represents the first transaction of its kind for a Brazilian issuer and the first for a Latin American airline. The original deal priced at the lowest coupon and yield ever achieved by the Company and the reopening of the transaction priced with a negative yield, as a result of GOL's improved credit and equity risk perception by the market. The deal also allowed GOL to extend its maturity profile while simultaneously reducing its borrowing costs and creating a channel for financing in GOL's capital structure.
"The successful placement of the GOL Convert was another step in our multi-year liability management effort, following successful deals in the global bond and local debenture markets, all of which have significantly reduced the Company's cost of capital and improved its financial flexibility," said Richard Lark, GOL's EVP and CFO. "The recognition by Airline Economics was made possible by the focus and dedication of all the GOL team. The award is evidence of the results of our successful transformation, with operating and balance sheet strengthening."
GOL has continued to deliver on its deleveraging plan and the GOL Convert was another example of its focus on interest rate savings, debt maturity extension, funding diversification and, most importantly, commitment to "equitizing" of the balance sheet in the future. This track record has been acknowledged by the international rating agencies, as Moody's upgraded GOL by two notches to B+ a month before the GOL Convert placement, while Fitch upgraded the Company to a B+ rating in the wake of the deal.
GOL's issue was arranged by global coordinators BofA Securities, Evercore ISI and Morgan Stanley and joint bookrunners BTG Pactual, Deutsche Bank, Credit Agricole, BCP Securities, Nomura, BBI, Santander, Buckingham Research Group and Banco do Brasil.
About GOL: Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.
SOURCE GOL Linhas Aéreas Inteligentes S.A.