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Associated Press
16-05-2025
- Business
- Associated Press
GOL secures $1.9 billion of 5-year exit financing
SíO PAULO, May 16, 2025 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ('Company' or 'GOL'), one of the leading airlines in Brazil, today announced that it has successfully secured binding commitments for US$1.90 billion in exit debt financing in connection with the Chapter 11 cases initiated by the Company and its subsidiaries, pursuant to the U.S. Bankruptcy Code, in the U.S. Bankruptcy Court for the Southern District of New York (the 'Exit Financing'). During the last six months, GOL has conducted a widely marketed process. Following the Bankruptcy Court's approval of the Company's backstop agreement with Castlelake, L.P. and Elliott Investment Management, L.P. (the 'Anchor Investors'), pursuant to which the Anchor Investors made commitments to purchase up to $1.25 billion of the Company's exit financing, the Company reached a settlement agreement with an ad hoc group (the 'Ad Hoc Group') of holders of 8.00% Senior Secured Notes due 2026 issued by Gol Finance (Luxembourg), pursuant to which the members of the Ad Hoc Group made commitments to purchase $125 million of the Company's $1.9 billion of exit financing notes. GOL needed to secure US$ 495.5 million in additional commitments to complete the Exit Financing and ultimately received commitments for US$ 796.9 million. Due to this demand, GOL reduced the interest rate of the Exit Financing from 14.625% to 14.375%. Moreover, the Company requested that the Ad Hoc Group agree to reduce its previously disclosed commitment of US$125 million by US$75 million, increasing the total amount available to other investors to US$ 570.5 million. The Ad Hoc Group also agreed to reduce its US$ 10 million 'Work Fee' to US$ 4.0 million. Pursuant to the Exit Financing commitment letters, the participating investors obligated themselves to purchase US$ 1.90 billion (excluding fees and costs paid) in debt instruments to be issued on the effective date of the restructuring plan in the Chapter 11 Cases (the 'Plan'). Subject to the Court's confirmation of the Plan, the Exit Financing will comprise: The Exit Financing will be used to repay the obligations under the debtor-in-possession financing entered into by the Company and its subsidiaries in connection with entry into the Chapter 11 Cases and to pay transaction costs. The financing will also enhance the Company's liquidity position following its emergence from the Chapter 11 Cases, providing working capital and other support for business operations moving forward. Advisors In the context of its restructuring efforts, GOL is working with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, financial advisor and sole restructuring advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acts as GOL's Brazilian legal advisor. Special note regarding forward-looking statements This material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words 'will,' 'maintain', 'plans' and 'intends' and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes S.A GOL is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of 'Being the First for All'. GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit GOL Investor Relations [email protected] View original content to download multimedia: SOURCE GOL Linhas Aéreas Inteligentes S.A.
Yahoo
16-05-2025
- Business
- Yahoo
GOL secures $1.9 billion of 5-year exit financing
SíO PAULO, May 16, 2025 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ("Company" or "GOL"), one of the leading airlines in Brazil, today announced that it has successfully secured binding commitments for US$1.90 billion in exit debt financing in connection with the Chapter 11 cases initiated by the Company and its subsidiaries, pursuant to the U.S. Bankruptcy Code, in the U.S. Bankruptcy Court for the Southern District of New York (the "Exit Financing"). During the last six months, GOL has conducted a widely marketed process. Following the Bankruptcy Court's approval of the Company's backstop agreement with Castlelake, L.P. and Elliott Investment Management, L.P. (the "Anchor Investors"), pursuant to which the Anchor Investors made commitments to purchase up to $1.25 billion of the Company's exit financing, the Company reached a settlement agreement with an ad hoc group (the "Ad Hoc Group") of holders of 8.00% Senior Secured Notes due 2026 issued by Gol Finance (Luxembourg), pursuant to which the members of the Ad Hoc Group made commitments to purchase $125 million of the Company's $1.9 billion of exit financing notes. GOL needed to secure US$ 495.5 million in additional commitments to complete the Exit Financing and ultimately received commitments for US$ 796.9 million. Due to this demand, GOL reduced the interest rate of the Exit Financing from 14.625% to 14.375%. Moreover, the Company requested that the Ad Hoc Group agree to reduce its previously disclosed commitment of US$125 million by US$75 million, increasing the total amount available to other investors to US$ 570.5 million. The Ad Hoc Group also agreed to reduce its US$ 10 million "Work Fee" to US$ 4.0 million. Pursuant to the Exit Financing commitment letters, the participating investors obligated themselves to purchase US$ 1.90 billion (excluding fees and costs paid) in debt instruments to be issued on the effective date of the restructuring plan in the Chapter 11 Cases (the "Plan"). Subject to the Court's confirmation of the Plan, the Exit Financing will comprise: US$ 1.250 billion provided by the Anchor Investors; US$ 50 million provided by the Ad Hoc Group; US$ 30 million in new money participation in the Company's 2026 Rights Offering; and US$ 570 million in commitments by other investors. The Exit Financing will be used to repay the obligations under the debtor-in-possession financing entered into by the Company and its subsidiaries in connection with entry into the Chapter 11 Cases and to pay transaction costs. The financing will also enhance the Company's liquidity position following its emergence from the Chapter 11 Cases, providing working capital and other support for business operations moving forward. Advisors In the context of its restructuring efforts, GOL is working with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, financial advisor and sole restructuring advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acts as GOL's Brazilian legal advisor. Special note regarding forward-looking statements This material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words "will," "maintain", "plans" and "intends" and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes S.A GOL is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of "Being the First for All". GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit GOL Investor Relationsir@ View original content to download multimedia: SOURCE GOL Linhas Aéreas Inteligentes S.A. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
GOL Reaches Settlement with Ad Hoc Group of 2026 Noteholders
SíO PAULO, May 1, 2025 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ("Company" or "GOL"), one of the leading airlines in Brazil, today announced that the Company has reached an agreement in principle with an ad hoc group (the "Ad Hoc Group") of holders of 8.00% Senior Secured Notes due 2026 issued by Gol Finance (Luxembourg) (the "2026 Senior Secured Notes") which consensually resolves a dispute with respect to the consideration to be provided to all holders of 2026 Senior Secured Notes under the Company's chapter 11 plan of reorganization (the "Plan") and pursuant to which the members of the Ad Hoc Group have made commitments to purchase $125 million of the Company's $1.9 billion of exit financing notes. In order to facilitate implementation of the favorable settlement with the Ad Hoc Group, Castlelake, L.P. and Elliott Investment Management, L.P. have consented to making changes to their existing $1.25 billion backstop arrangement with respect to the Company's exit financing. Combined with the Ad Hoc Group's commitment, GOL has now secured not less than $1.375 billion of exit debt financing commitments. Under the terms of the deal with the Ad Hoc Group, which is comprised of a substantial majority of holders of the 2026 Senior Secured Notes, such holders (the "Consenting Noteholders"), which in the aggregate hold an amount of 2026 Senior Secured Notes necessary for that class of claims to approve the Plan, have agreed to sign the Plan Support Agreement previously entered into between the Company, Abra Group Limited, and the Official Committee of Unsecured Creditors pursuant to which the Consenting Noteholders will agree to support the Plan on modified terms. The Plan will be amended to provide, among other things, that all holders of 2026 Senior Secured Notes that do not participate in the exit financing will receive their pro rata share of up to $100 million of non-exchangeable take-back notes. The members of the Ad Hoc Group will commit to purchase an aggregate $125 million in exit financing and holders of 2026 Senior Secured Notes that are not Ad Hoc Group members will have the right to purchase an aggregate $50 million of exit financing and, to the extent such holders do participate, they, along with the participating members of the Ad Hoc Group, will receive modified treatment under the Plan in the form of additional exit notes and non-exchangeable take-back notes. In the coming weeks, GOL plans to file an amended Plan with the U.S. Bankruptcy Court to reflect the amendments contemplated by its agreement with the Ad Hoc Group. The Company expects to emerge from its ongoing Chapter 11 cases in June 2025. Finally, GOL reiterates that, under the terms of the Plan, it will significantly reduce its indebtedness by converting into equity or extinguishing up to approximately US$1.7 billion of its pre-Chapter 11 funded debt and up to approximately US$850 million of other obligations. As such, considering that the conversion will be carried out based on the economic value of GOL's shares prior to the conversion, in accordance with applicable law, a substantial dilution of GOL's currently outstanding shares is expected (subject to shareholders' preemptive rights as provided under Brazilian law). Special note regarding forward-looking statements This material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words "will," "maintain", "plans" and "intends" and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes S.A GOL is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of "Being the First for All". GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 13,900 highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 138 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit Investor Relations ir@ View original content to download multimedia: SOURCE GOL Linhas Aéreas Inteligentes S.A. Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Mitel Takes Action to Optimize Capital Structure, Positioning the Business for Efficient Growth and Long-term Sustainability
Support from a majority of existing lenders and $124.5 million in new financing will increase liquidity to optimize business operations and capitalize on the hybrid communications market opportunity Balance sheet to be deleveraged by approximately $1.15 billion and annual cash interest expense to be reduced by approximately $135 million Company to continue to provide global market-leading flexible and secure communication and collaboration solutions to customers; operations to continue in the ordinary course Vendors expected to be paid in full SUNNYVALE, Calif., March 10, 2025--(BUSINESS WIRE)--Mitel Networks Corporation, ("Mitel" or "the Company"), a global leader in business communications, today announced it has entered into an agreement with an ad hoc group of its senior lenders (the "Ad Hoc Group"), certain junior lenders, and other key stakeholders to recapitalize its debt in a manner that best positions the Company to optimize its global operations and drive profitable and predictable growth. Right-sizing Mitel's capital structure will enable the Company to invest in its long-term business strategy as it looks to be the leader in unified communications, addressing the increased demand for hybrid communications solutions by new and existing enterprise customers in the most demanding industries and geographies, while also continuing to support more than 70 million users with customers in over 100 countries. Mitel will continue to operate in the ordinary course throughout its financial reorganization process, fulfilling its go-forward commitments to customers, partners, and other stakeholders. With support from the Ad Hoc Group and other key stakeholders, Mitel expects this to be a swift, streamlined process with minimal disruption to customers, employees, vendors, or partners. "For over 50 years, Mitel has pioneered and adapted to the ever-changing communications industry, shaping how organizations worldwide connect and communicate," said Tarun Loomba, Chief Executive Officer of Mitel. "We are confident the steps we are taking to optimize our capital structure will make us a stronger company primed for efficient and sustainable growth. Our strengthened capabilities at the end of this process will ensure our ability to continue to support customers and partners with innovative solutions, incorporating emerging technologies, and meeting their evolving needs for secure, reliable communications solutions for years to come. We look forward to becoming an even stronger vendor to our customers through this process, better positioned to power their most meaningful connections and to address the increasing preferences for hybrid communications solutions, globally." To implement the reorganization transaction, the Company and certain of its affiliates have commenced solicitation of a joint prepackaged plan of reorganization (the "Plan") and filed voluntary petitions seeking relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Mitel's operations outside of the U.S., Canada, and select business segments in the U.K. are not included within the Chapter 11 filing. Mitel's global business will continue to operate in its normal course. Mitel has received a commitment for $60 million of new money debtor-in-possession ("DIP") financing from certain of the supporting lenders to further bolster the business through the restructuring process. Once approved by the Court, the DIP financing and Company's existing working capital will provide liquidity to support day-to-day operations during the Chapter 11 process. Mitel has also received a commitment for $64.5 million of new exit financing upon consummation of the Plan to support the Company's go-forward operations. This process will result in the Company's balance sheet being deleveraged by approximately $1.15 billion and its annual cash interest expense to be reduced by approximately $135 million. As part of the Chapter 11 process, the Company has sought expedited relief through customary motions to allow Mitel to maintain its operations in the ordinary course. Under the terms of the motions, employees would continue to be paid as usual and continue their benefits without disruption. Additionally, the Company has filed a motion with the Bankruptcy Court that will allow it to make timely payments to vendors, suppliers, and other trade partners in full under normal terms for goods and services delivered both before and after the filing date. The Company is represented in this matter by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisor, FTI Consulting, Inc. as financial advisor, and PJT Partners LP as investment banker. The Ad Hoc Group is advised by Davis Polk & Wardwell LLP as legal advisor and Perella Weinberg Partners LP as investment banker. For more information about Mitel's financial restructuring, visit or call (855) 704-1401 (U.S. and Canada); or (949) 570-9105 (International). About Mitel Mitel is a global leader in business communications, providing businesses with advanced communication, collaboration, and contact center solutions. With more than 70 million users across over 100 countries, Mitel empowers organizations to connect, communicate, and collaborate seamlessly, with the flexibility and choice they need to thrive, both now and for the future. Through proven experience and innovative solutions, Mitel delivers communications without compromise. For more information, go to and follow us on LinkedIn and X @Mitel. Mitel is the registered trademark of Mitel Networks Corporation. All other trademarks are the property of their respective owners. View source version on Contacts Media Contact: pr@ Rachel Chesley / Diana SangiorgioMitelCommunications@
Associated Press
10-02-2025
- Business
- Associated Press
NOTEHOLDER UPDATE IN RELATION TO UKRENERGO
US$825,000,000 6.875% GUARANTEED SUSTAINABILITY-LINKED GREEN NOTES DUE 2028 (THE 'NOTES') ISSUED BY PRIVATE JOINT STOCK COMPANY 'NATIONAL POWER COMPANY 'UKRENERGO"" (THE 'COMPANY') LONDON, Feb. 10, 2025 /PRNewswire/ -- The Ad Hoc Group of holders of the Notes (the 'Ad Hoc Group'), advised by Cleary Gottlieb Steen & Hamilton LLP, wishes to comment on the Company's announcement issued today (the 'Company Announcement'). It is the view of the Ad Hoc Group that the proposal put forward by the Company detailed in the Company Announcement (the 'Company Proposal') has no prospect of approval by a requisite majority of holders of the Notes nor does it form the basis for viable point of engagement with Noteholders. The Ad Hoc Group considers that the proper context for evaluating the Company's request for a debt restructuring includes the following considerations: There is no historical example of a haircut being imposed by a state-owned enterprise ('SOE') in Ukraine. Ukrainian SOEs (including the Company) are commercial entities. Where SOEs have entered into debt restructurings, such transactions have always been conducted on the basis of the entities' debt capacities and commercial relationships. In the current case, where the Noteholders additionally benefit from credit enhancement in the form of a sovereign guarantee, a haircut would be even more unwarranted. There is no economic reason for the Company not to provide a par recovery on the basis of its current financial position – it is clear that the Company is liquid, solvent and has the financial capacity to make payments on the Notes on time. By agreeing to suspend coupon payments until November 2024, holders of the Notes have already provided considerably more cash flow relief to the Company than any of its other creditors (whose indebtedness ranks pari passu with the Notes and who, despite ranking pari passu with the Notes, continued to receive payments on their indebtedness during this period). In the event the Company were to aim for a non-par recovery (which is not justified on commercial grounds), it should enter into comprehensive debt restructuring negotiations with all of its pari passu lenders. The Company has shown no intention to date of adopting a common approach to all its creditors. The Notes were issued as Green Bonds which provided financing to the Company on concessional terms. The use of proceeds of the Notes was to cancel the Company's overdue obligations to renewable energy producers. It would be commercially egregious to tap markets for concessional Green Bonds to cover the Company's obligations to renewables producers and then ask or expect Green Bond holders to accept anything other than full repayment of the subsidized financing provided. The Group notes that the Company entered into a borrowing more recently with similar use of proceeds from multilateral sources. There is no commercial basis to support selectively restructuring debts that are legally and logically indistinguishable. The Company Proposal does not adhere to any of these principles and moreover: It uses the sovereign guarantee in support of the Notes (a credit enhancement tool) to detract from rather than enhance Noteholder recoveries. This is illogical and an effort to obfuscate the point that, consistent with historical practice, a haircut would not be justified even without a sovereign guarantee. It is entirely at odds with market expectations based on historical precedent, the Company's circumstances and current market prices of the Notes. It is underpinned by inaccurate or otherwise incomplete data, information and assumptions. In relation to this, the Ad Hoc Group also notes that the Company did not include provision for full payment in respect of the Notes in their 2025 tariff submission (which is wholly inconsistent with its obligations under the Notes). There is little currency to be gained by an argument that its tariffs do not support payments under the Notes, when the Company failed to request tariffs consistent with its financial obligations. Notwithstanding this, the Ad Hoc Group remains willing to engage with the Company constructively regarding a potential transaction in relation to the Notes provided that such engagement is underpinned by the key principles set out above. To this end, the Ad Hoc Group provided an indicative term sheet setting out a proper basis for constructive, good-faith negotiations with a view to delivering a transaction that would be able to command sufficient support from holders of the Notes to be implementable (the 'AHG Proposal'). The key terms of the AHG Proposal are as follows: 1. Payment by the Company of all past due interest on the Notes in full. 2. Either of the following to enable a partial de-risking of the Notes in exchange for releasing the full sovereign guarantee: a. a partial paydown of the Notes in cash with holders of the Notes receiving US$460 in cash for each US$1,000 in principal amount of the Notes; or b. the Notes receiving the benefit of a security package consisting of the same instruments that were provided by the sovereign to holders of the sovereign's USD 7.75% Notes due 2024 as part of the most recent sovereign restructuring transaction. I.e. for each US$1,000 of aggregate principal amount of, and accrued interest on, the Notes: US$280.00 in principal amount of Step Up A Bonds 2029; US$120.00 in principal amount of Step Up A Bonds 2034; US$21.85 in principal amount of Step Up B Bonds 2030; US$81.65 in principal amount of Step Up B Bonds 2034; US$69.00 in principal amount of Step Up B Bonds 2035; and US$57.50 in principal amount of Step Up B Bonds 2036. 3. To the extent not redeemed, the Notes remaining in place on their existing terms and payment schedule but with a coupon of 8.5%. 4. A consent fee of US$20 in cash for each US$1,000 in principal amount of the Notes. The Ad Hoc Group considers the AHG Proposal to be fully compatible with the 'Most Favoured Creditor' provisions in the sovereign bond documents. Whilst the Ad Hoc Group remains willing to engage with the Company to agree a workable solution, for such discussions to have any prospect of being successful the Company would need to agree to engage with the Ad Hoc Group on the basis of the principles set out above. Holders of the Notes are invited to contact Alastair Goldrein or James Armshaw of Cleary Gottlieb Steen & Hamilton LLP for further information. The contact details for Messrs. Goldrein and Armshaw appear below:
