GOL Linhas Aéreas Inteligentes’ (GOL) previously announced private offer to exchange any and all of its outstanding Senior Unsecured Notes expired on July 1, 2016. The outcome of the Exchange Offers will reduce GOL's total debt by US$101.2 million (R$326.9 million), with a cash use of US$13.9 million, and provide GOL with annual cash interest expense savings of US$9.3 million.
GOL states that this offer, together with the renegotiation of the aircraft leases, amendments to the terms of the Brazilian debentures and other important liquidity measures, will help improve GOL's capital structure and help ensure that the airline “emerges from the current Brazilian political and economic crises in the best competitive position”.
Payment of interest and principal on the New Notes to be issued in the Exchange Offers will be secured by collateral that has been valued at US$222.7 million by an independent appraisal firm, representing a principal coverage ratio of over 3 to 1. The New Notes will be effectively senior to the Old Notes, to the extent of the value of the collateral provided to the holders of the New Notes.