Brazil’s Gol has secured binding commitments for exit financing with a five-year term totalling $1.9bn, which relates to the airline’s restructuring under Chapter 11 bankruptcy protection in the US.
Gol said in a regulatory filing that this funding package includes $1.25bn from anchor investors Castlelake and Elliott Investment Management, with an additional $50 million coming from an ad hoc group of holders of the company’s 8.00% senior secured notes due 2026, issued by Gol Finance (Luxembourg).
The remaining $600 million comes from a mix of new investor commitments and rights offerings. Gol received $796.9 million in additional commitments, well above the $495.5 million it initially sought to complete its exit financing. This has allowed the company to reduce the interest rate of the financing from 14.625% to 14.375%.
The ad hoc group will reduce its previously disclosed commitment of $125 million by $75 million, increasing the total amount available to other investors to $ 570.5 million. The group has also agreed to reduce its $10 million work fee to $4 million.
This financing is expected to repay debtor-in-possession financing, pay transaction costs and improve the airline’s liquidity as it exits Chapter 11 proceedings.
Milbank is acting as legal advisor, with Seabury Securities serving as investment banker, lead placement agent, and sole restructuring advisor. BNP Paribas Securities is serving as bookrunner and placement agent, while AlixPartners is advising on financial matters. Lefosse Advogados is advising on Brazilian legal matters.
In April, Gol stated that it had extended the deadline for investors to analyse its proposed $1.9bn exit financing plan, citing market volatility in the wake tariffs announced by US President Donald Trump earlier in April.
Gol plans to submit its updated reorganisation plan to the US Bankruptcy Court in the coming weeks and expects to emerge from Chapter 11 by June.