Gol Considers Bond

Brazilian airline Gol is using cash on hand to finance the recently agreed purchase of competitor Webject, but it could hit the USD bond markets to help pay for the transaction, CFO Leonardo Pereira tells LatinFinance. The tie-up should result in BRL100m in savings for the first two years following regulatory approval, he adds. Gol agreed this week to acquire fellow Brazilian low-cost airline Webjet for BRL311m ($197m), subject to approval and possible adjustments. The acquisition value consists of a BRL96m payment and the assumption of BRL215m in debt. Webjet has BRL81m in debt coming due this year, with another BRL34m in 2012. This comes on top Gol’s BRL146m of maturities in 2011 and BRL55m for 2012. Sao Paulo boutique Virgent Partners advised Gol on the transaction, while Citi advised Webjet.