Afya Limited Announces Intended Issuance of Debentures in Brazilian Market

Rhea-AI Summary

Afya Limited (AFYA) plans to issue 500,000 non-convertible, unsecured debentures through its subsidiary, totaling R$500 million. The offering will occur in Brazil under CVM Rule No. 476 and is not registered in the United States. Proceeds will strengthen cash positions and extend debt maturities. The debentures are set to mature on January 15, 2028, with principal amortization in two installments in 2027 and 2028. This announcement does not constitute an offer in the U.S. and includes forward-looking statements subject to risks and uncertainties.

Positive

• Issuing R$500 million in debentures enhances cash position.
• Extending debt maturity profile improves financial flexibility.

Negative

• None.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA), today announced its intention to issue, through its wholly-owned subsidiary Afya Participações S.A., 500,000 simple, non-convertible, unsecured debentures in a single series, each with a par value of R$1,000, totaling an aggregate amount of R$500 million (“Debentures”), by means of a proposed public distribution with restricted placement efforts in the Brazilian market (the “Offering”), under the terms of the Brazilian Securities and Exchange Commission (“CVM”) Rule No. 476, dated January 16, 2009, and is not being generally made anywhere outside of Brazil, including in the United States or to US investors. Accordingly, the Debentures will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.

Afya intends to use the proceeds of the Offering for general corporate purposes, strengthening its cash position, and extending its debt maturity profile.

The Debentures are intended to be issued with a maturity date of January 15, 2028 (“Maturity Date”), with the principal to be amortized in two equal installments payable on January 15, 2027 and January 15, 2028, corresponding to the fourth and fifth years of the transaction, respectively.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities to be issued by Afya or any of its subsidiaries, and shall not constitute an offer, solicitation or sale in the United States or to US persons or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements speak only as of the date hereof and are based on Afya’s current plans, estimates of future events, expectations and trends that affect or may affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of Afya’s Class A common shares, and are subject to several known and unknown uncertainties and risks, many of which are beyond Afya’s control. Therefore, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this press release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented. Afya does not undertake any obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors.

More information available on: https://ir.afya.com.br/ >> Financials >> SEC Filings

About Afya

Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221206006085/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br

Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya Limited

FAQ

What is Afya Limited's recent announcement regarding debentures?

Afya Limited announced its plan to issue 500,000 unsecured debentures totaling R$500 million, aimed at strengthening its cash position.

What will the proceeds from the debenture offering be used for?

The proceeds will be used for general corporate purposes and to extend Afya's debt maturity profile.

What is the maturity date for the new debentures issued by Afya?

The debentures will mature on January 15, 2028.

Are the new debentures offered by Afya registered in the U.S.?

No, the debentures are not registered under the U.S. Securities Act and cannot be offered or sold in the U.S.

How will the principal of the debentures be paid back?

The principal will be amortized in two equal installments on January 15, 2027, and January 15, 2028.