NEW YORK, July 20, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Gol Linhas
Aereas Inteligentes S.A. (NYSE: GOL). Select highlights from the
internally released reports are being made available to the general
public (included below), with access to the entirety of the
research available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=GOL
Highlights from our GOL Report include:
- Recent Strategic transactions - On July 10, 2015, GOL Linhas Aéreas Inteligentes
S.A. reported that its controlling shareholder Fundo de
Investimento em Participações Volluto ("Volluto") and Delta Air
Lines, Inc. have agreed to make a joint equity investment in GOL of
up to $146 million.
- Strategic Intent - The release highlighted that Volluto
has agreed for the equity investment $90
million in order to exercise its preemptive rights to own c.
61% of the new shares of GOL in the capital increase, and also to
allocate Delta its preemptive rights to subscribe for any remaining
shares, after all other shareholders have exercised their
preemptive rights. Further, for an aggregate investment of up to
US$56 million Delta agreed to
exercise its preemptive rights to hold c. 2.9% of the new shares in
the capital increase, and to exercise the preemptive rights
assigned to it by Volluto to subscribe for additional shares
remaining after the exercise of preemptive rights by all other
shareholders. Moreover, all preferential shareholders of GOL,
except for holders of preferred shares in the form of ADRs, will be
allowed to exercise their preemptive rights to subscribe for a
portion of the newly issued shares equivalent to their existing
shareholdings, pursuant to the by-laws of GOL.
- GOL Term Loan Guaranteed by Delta - Under
an agreement between Volluto and Delta, the latter has also agreed
to guarantee a term loan to be entered into by GOL with third party
lenders of up to $300 million. GOL
will also provide a security interest in common shares of Smiles
S.A. to Delta to secure any payments made by Delta on behalf of
GOL. The Delta guarantee, to be arranged by Morgan Stanley Senior
Funding, Inc., will be subject to certain conditions including the
negotiation of definitive documentation.
- Extension of Commercial Arrangements with Delta
- GOL and Delta have also agreed to further increase
the duration of their existing strategic, long-term commercial
cooperation agreements with exclusive options intended to
strengthen the cooperation and synergies between both the
companies, and also to extend their commercial arrangements related
to aircraft maintenance services.
- Boosting financial strength - The above-mentioned
strategic transactions are aimed to further strengthen the
strategic partnership of GOL and Delta and to substantially enhance
the financial position and liquidity of GOL. Further, the
consummation of each of the strategic transactions is subject to
conditions, including the execution and delivery of definitive
documentation, regulatory approvals from the Brazilian antitrust
authority, and other customary closing conditions.
To find out how this influences our rating on Gol Linhas Aereas
Inteligentes S.A., read the full report in its entirely here:
http://www.aciassociation.com/?c=GOL
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