Delta is in talks to delay $300m Gol loan payment

Delta is in talks to let Gol Linhas Inteligentes postpone payments on a $300m loan for which the US carrier is guarantor, two people familiar with the matter said. The loan matures in August. Negotiations are under way and a delay agreement is expected to be reached, the people said, asking not to be named because the discussions are private. No additional details were provided. Victor Mizusaki, an analyst at Banco Bradesco BBI SA, said in a June 5 email to clients that he expects the discussions to “conclude soon,” which should alleviate Gol’s cash position. Delta is guarantor of the five-year loan that Gol took out in August 2015, paying an annual interest rate of 6.5%. Morgan Stanley acted as administrative agent and representative of creditors, Gol said in a statement at the time. Voting shares issued by Smiles SA, the Brazilian airline’s mileage program, were used as collateral to Delta. When asked about the loan and talks, Gol referred to previous public statements, including a May conference call in which CFO Richard Freeman Lark Jr. said the company planned to pay the $300m term loan in August, as well as a local bond of about 150m reais ($27m) in September. <br/>