Investors Being Sounded Out to Join Castlelake on Abra Financing
(Bloomberg) -- BCP Securities has been gauging investor interest about participating in financing to help support troubled Brazilian airline Gol Linhas Aereas Inteligentes SA’s largest shareholder.
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The package would include both bonds and loans, according to people familiar with the situation who asked not to be identified discussing a private matter. They added BCP is looking for investors to participate alongside investment firm Castlelake LP, which entered into a $1.3 billion commitment to refinance the debt of Abra Group Ltd.
Gol in January filed for Chapter 11 bankruptcy protection in the US, and Abra has been working to stave off bond-default risks.
Documents released to investors last month, when Abra disclosed the commitment letter with Castlelake, said a $1.3 billion term loan could be reduced by as much as $500 million if bonds were sold.
Airline Owner Abra Nears $1.3 Billion Castlelake Loan Deal
The plan is to allocate the new Abra notes by mid-September and close the Castlelake deal in early October, the people said.
Abra declined to comment while Castlelake and BCP didn’t respond to messages.
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