SAO PAULO, March 22 (Reuters) - Brazil’s largest airline, Gol Linhas Aereas Inteligentes, said in a securities filing on Friday it had priced the offering for a $300 million issuance of convertible bonds maturing in 2024 at 3.75 percent interest per year.
Under certain conditions, the bonds can be repaid by the airline with shares of the company that are traded in the New York Stock Exchange. Convertible bonds are not common among Brazilian companies but they can help lower interest rates.
Gol said in the securities filing that it will use the proceeds of the bond issuance to fast-track the payment of some of its debts, which can have interest rates as high as 9 or 10 percent, according to the airline’s financial statements.
Gol has significant debt levels for an airline of its size but has been working to reduce them in recent months. (Reporting by Marcelo Rochabrun)