Benzinga | Sep 15, 2021 09:08AM EDT

GOL To Receive $200M Investment From American Airlines, Upgrades Codeshare Agreement

* GOL Linhas A?reas Inteligentes S.A. (NYSE:GOL) has agreed to expand its commercial cooperation with American Airlines Group Inc (NASDAQ:AAL) through an exclusive codeshare agreement for the next three years. GOL will receive an equity investment of $200 million (R$1.05 billion) from American Airlines.

* The agreement between GOL and American Airlines expands beyond the terms of the existing codeshare partnership in place since February 2020.

* American Airlines will invest $200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the economic interest for $9.00 per preferred share.

* The partnership also enables customers to purchase connecting flights on both airlines using one reservation.

* GOL's Smiles and American's AAdvantage loyalty programs will be partners in the frequent flyer program in the Americas, with enhanced benefits coming in early 2022.

* Price Action: GOL shares are trading higher by 7.92% at $7.90 and AAL higher by 0.10% at $19.23 during the premarket session on Wednesday.