São Paulo, April 28, 2021 - GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest domestic airline, today announces it is initiating a capital increase of up to approximately R$512 million ("Capital Increase") led by its controlling shareholders, the Constantino brothers. GOL's controlling shareholders have informed the Company's Board of Directors that they intend to acquire up to approximately R$270 million in newly issued shares of GOL, representing their pro rata amount, at a price per preferred share (GOLL4) of R$24.19, which is based on today's closing price and represents a premium of 9.13% to the 30-day volume-weighted-average-price of GOL's preferred shares.
Constantino de Oliveira Junior, GOL's Chairman stated: "We have every confidence in the recovery of the air transportation market and GOL's leadership in Brazil, which is why we are making an investment in the future of the Company. Prior to the pandemic, GOL was already the most competitive, lowest cost and most financially sound airline in South America. As GOL prepares for the post-pandemic recovery, this capital increase will provide funding for the next phase of growth, with deeper penetration into existing markets as well as new opportunities for expansion. Today's announcement of an equity capital increase of up to R$512 million is the first step in this process."
In alignment with this vision for GOL's future, the equity capital will help to support both credit-accretive liability management and earnings-accretive aircraft acquisitions.
The support of GOL's controlling shareholders, one of Brazil's largest and most successful groups in the transportation industry, is a competitive advantage to the airline over its peers. Since founding GOL in 2000, the Constantino brothers have made investments of over US$250 million in capital into the Company at critical junctures in its growth. Management believes that this Capital Increase is demonstrative of the controlling shareholders' unequivocal confidence in the Company's outlook and their long-term commitment to GOL's success.
Strong Operational and Financial Management
The capital increase is additive to GOL’s best-practice operational and financial management, as well as to GOL Secured Financing Program (the “Program”), and existing unsecured capital markets debt obligations. Further, when combined with the eventual successful consolidation of Smiles Fidelidade S.A. (“Smiles”), GOL’s loyalty business, the Company has implemented a capitalization plan that will enable the airline to successfully navigate through the pandemic.
Since the beginning of the pandemic, GOL has:
|-||consistently maintained its average liquidity levels at around R$2.0 billion; |
|-||reduced its debt by approximately R$4 billion, while meeting all financial obligations of amortization and interest payments;|
|-||avoided uncompetitive contract re-negotiations with partners, cannibalization of future revenues and profitability, and capital raisings with unattractive terms;|
|-||prioritized maintaining and growing its market leading CASK, quality PRASK and financial equilibrium, with unit costs that are the lowest in its markets and a PRASK premium over competitors;|
|-||strategically used unencumbered assets to fund credit accretive liability management;|
|-||preserved its non-cash current assets and financing options; and|
|-||minimized its current liabilities.|