SAO PAULO, April 3, 2017 /PRNewswire/ -- GOL Linhas Aereas Inteligentes S.A. ("GOL" or "Company"), (NYSE: GOL and BM&FBOVESPA: GOLL4), Brazil's #1 airline, announced today that it has repaid in full the US$55.9 million (R$177.2 million) in 7.5% Senior Notes due 2017 that were outstanding at their maturity date on April 3, 2017, using available cash.
In addition, in 1Q17 GOL amortized R$71.7 million of debt on its aircraft finance leases, permanently returned to lessors two aircraft under operating leases equivalent to R$20.5 million capitalized lease debt, and reduced other indebtedness by R$19.0 million. Due to these initiatives, GOL has reduced its indebtedness by R$4.7 billion in the last 15 months. On a pro forma basis for the repayment of its 7.5% Senior Notes, the Company's Adjusted Net Debt to EBITDAR ratio at March 31, 20117 was approximately 4.5x. At March 31, 2017, GOL had total liquidity (defined as cash, cash equivalents and accounts receivable) of R$1.3 billion.
"This debt reduction is another positive step in our phased approach to transform our balance sheet and address our financial obligations", said Richard Lark, Executive Vice President and CFO. GOL's debt reduction in the quarter lowers its annual cash interest expense by R$17.0 million. "Our ability to make these repayments reflects the Company's improved cash flow position. GOL's target is to reach an Adjusted Net Debt to EBITDAR ratio of under 4.0x by the end of the year", added Lark.
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