Dollar bonds of Brazilian air carriers Gol and Azul jumped higher after both companies struck financing deals that would help ease its liability and cash concerns. Azul’s dollar bonds jumped by a massive 15 points after it struck an agreement with most of its lessors to reduce its payments in exchange for a combination of stocks and bonds. Citigroup said that the deal looks to be “a powerful vote of confidence in the carrier’s long-term staying power and cash-generating ability”.
Gol’s dollar bonds were higher by over 1 point as it announced a debt restructuring with Abra Group, a holding company that will control operations of Gol and Avianca Group and a group of creditors. BBI analyst Victor Mizusaki said that the transaction would provide Gol with $451mn in cash, lengthen its debt profile and ease negotiations with lessors.
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