Brazilian air carrier
GOL Linhas Aéreas Inteligentes, and subsidiaries,
have negotiated the private exchange of notes issued by GOL
Finance and Gol LuxCo for new notes offered by Gol LuxCo.
The bond deal represents the first in Brazil secured by a
first priority security interest in the equipment spare parts
of the guarantor.
Milbank Tweed, Hadley & McCloy advised GOL Linhas
Aéreas Inteligentes and its subsidiaries. The new notes
are guaranteed by Gol Linhas and are secured by a first
priority security interest in all spare parts owned by GOL.
They are also structurally senior to all of GOL’s
existing and future unsecured indebtedness and senior to any
future subordinated indebtedness that GOL may incur.
According to Andrew Jánszky, partner at Milbank Tweed
Hadley & McCloy, the deal was a successful exchange
offering particularly given the very difficult environment
facing both the company and the country.