Azul Announces Expiration and Final Results of Previously Announced Exchange Offer in respect of Existing 2028 First Out Notes for New Notes and Solicitation of Consents to Proposed Amendments to the Existing Indenture
Azul announces the completion of its exchange offer for 11.930% Senior Secured First Out Notes due 2028. The exchange offer, which expired on January 21, 2025, achieved a 99.69% participation rate of the total outstanding principal amount, successfully meeting the minimum exchange condition of 66.67%.
The completion is subject to several conditions, including the issuance of at least US$500,000,000 in Superpriority Notes and the consummation of Second Out Notes Exchange Offers. The company has received sufficient consents to implement proposed amendments to the existing notes terms.
The new notes will maintain the same 11.930% interest rate, with an interest commencement date of November 28, 2024. The settlement date will be announced soon, at which time Azul will accept and settle all validly tendered existing notes for the Total Early Consideration.
Azul annuncia il completamento della sua offerta di scambio per le Note Senior Secured First Out con un tasso del 11,930% in scadenza nel 2028. L'offerta di scambio, scaduta il 21 gennaio 2025, ha raggiunto un tasso di partecipazione del 99,69% dell'importo principale totale in circolazione, soddisfacendo con successo la condizione minima di scambio del 66,67%.
Il completamento è soggetto a diverse condizioni, tra cui l'emissione di almeno 500.000.000 USD in Superpriority Notes e la conclusione delle Offerte di Scambio delle Second Out Notes. L'azienda ha ricevuto consensi sufficienti per implementare le modifiche proposte ai termini delle note esistenti.
Le nuove note manterranno lo stesso tasso di interesse dell'11,930%, con una data di inizio degli interessi fissata al 28 novembre 2024. La data di regolamento sarà annunciata a breve, momento in cui Azul accetterà e regolerà tutte le note esistenti valide presentate per il Total Early Consideration.
Azul anuncia la finalización de su oferta de intercambio para las Notas Senior Aseguradas First Out con un interés del 11,930% con vencimiento en 2028. La oferta de intercambio, que expiró el 21 de enero de 2025, logró una tasa de participación del 99,69% del monto principal total pendiente, cumpliendo exitosamente con la condición mínima de intercambio del 66,67%.
La finalización está sujeta a varias condiciones, incluida la emisión de al menos 500,000,000 USD en Superpriority Notes y la consumación de las Ofertas de Intercambio de Second Out Notes. La compañía ha recibido suficientes consentimientos para implementar enmiendas propuestas a los términos de las notas existentes.
Las nuevas notas mantendrán la misma tasa de interés del 11,930%, con una fecha de inicio de intereses del 28 de noviembre de 2024. La fecha de liquidación será anunciada pronto, momento en el cual Azul aceptará y regulará todas las notas existentes válidamente presentadas para la Consideración Total Temprana.
아줄은 2028년 만기 11.930%의 선순위 담보 채권 교환 제안 완료를 발표했습니다. 2025년 1월 21일에 만기된 이 교환 제안은 총 발행된 원금의 99.69% 참여율을 달성하여 66.67%라는 최소 교환 조건을 성공적으로 충족했습니다.
완료는 최소 5억 달러의 초우선 채권 발행 및 세컨드 아웃 채권 교환 제안의 완료를 포함한 여러 조건에 따라 달라집니다. 회사는 기존 채권 조건에 대한 제안된 수정 사항을 실행하기 위한 충분한 동의를 받았습니다.
새로운 채권은 동일한 11.930% 이자율을 유지하며 이자 시작일이 2024년 11월 28일로 설정됩니다. 정산 날짜는 곧 발표될 예정이며, 그 때 아줄은 총 조기 고려안에 대해 유효하게 제출된 모든 기존 채권을 수용하고 정산할 것입니다.
Azul annonce l'achèvement de son offre d'échange pour des Obligations Senior Sécurisées First Out à 11,930% arrivant à échéance en 2028. L'offre d'échange, qui a expiré le 21 janvier 2025, a atteint un taux de participation de 99,69% du montant principal total en circulation, satisfaisant ainsi la condition minimale d'échange de 66,67%.
La finalisation est soumise à plusieurs conditions, y compris l'émission d'au moins 500.000.000 USD en Superpriority Notes et la conclusion des Offres d'Échange des Second Out Notes. La société a reçu des consentements suffisants pour mettre en œuvre les modifications proposées aux termes des obligations existantes.
Les nouvelles obligations maintiendront le même taux d'intérêt de 11,930%, avec une date de début des intérêts fixée au 28 novembre 2024. La date de règlement sera annoncée prochainement, moment auquel Azul acceptera et réglera toutes les obligations existantes valablement soumises pour la Total Early Consideration.
Azul kündigt den Abschluss seines Umtauschangebots für 11,930% Senior Secured First Out Notes mit Fälligkeit 2028 an. Das Umtauschangebot, das am 21. Januar 2025 abgelaufen ist, erzielte eine Teilnahmequote von 99,69% des gesamten ausstehenden Hauptbetrags und erfüllte erfolgreich die Mindestbedingung für den Austausch von 66,67%.
Der Abschluss unterliegt mehreren Bedingungen, einschließlich der Emission von mindestens 500.000.000 USD in Superpriority Notes und der Durchführung der Second Out Notes Umtauschangebote. Das Unternehmen hat ausreichende Zustimmungen erhalten, um die vorgeschlagenen Änderungen an den bestehenden Notenbedingungen umzusetzen.
Die neuen Notes werden den gleichen Zinssatz von 11,930% beibehalten, mit einem Zinsbeginn am 28. November 2024. Der Abrechnungstermin wird bald bekannt gegeben, zu dem Azul alle gültig angeboten bestehenden Notes zum Total Early Consideration annehmen und abwickeln wird.
- High participation rate of 99.69% in the exchange offer
- Successfully met minimum exchange condition of 66.67%
- Received sufficient consents for proposed amendments
- No cash payment for accrued and unpaid interest on existing notes
- Multiple conditions still pending for final settlement
- Exchange offer subject to complex regulatory requirements and restrictions
Insights
The extraordinary 99.69% participation rate in Azul's debt exchange offer represents a important milestone in the airline's financial restructuring efforts. This overwhelmingly positive response from creditors, far exceeding the required 66.67% threshold, demonstrates strong confidence in Azul's future prospects and restructuring strategy.
The exchange maintains the existing 11.930% interest rate while introducing modifications to the indenture terms. This preservation of the interest rate, coupled with high participation, suggests creditors are comfortable with the airline's ability to service its debt obligations. The transaction's success hinges on several key conditions, including the issuance of
For investors, this development signals a potentially stronger financial foundation for Azul. The high participation rate typically leads to reduced refinancing risks and improved debt management flexibility. In the broader context of the aviation industry, where capital structure optimization is important for sustainability, this successful restructuring could enhance Azul's competitive position and operational stability.
SÃO PAULO, Jan. 22, 2025 /PRNewswire/ -- Azul S.A., "Azul," (B3: AZUL4, NYSE: AZUL) ("Azul") today announces the expiration and final results of the previously announced offer by its wholly-owned subsidiary Azul Secured Finance LLP (the "Issuer") to Eligible Holders to exchange (the "Exchange Offer") any and all of the outstanding
Any capitalized terms used in this press release without definition have the respective meanings assigned to such terms in the Offering Memorandum.
The Exchange Offer and the Solicitation expired at 5:00 p.m., New York City time, on January 21, 2025 (the "Expiration Deadline"). As of the Expiration Deadline, Morrow Sodali International LLC, trading as Sodali & Co, the information agent and exchange agent in connection with the Exchange Offer and the Solicitation (the "Information and Exchange Agent") advised Azul that
The obligation of the Issuer to complete the Exchange Offer and the Solicitation is subject to certain conditions described in the Offering Memorandum, which include (i) the receipt of Existing Notes validly tendered (and not validly withdrawn) prior to the Expiration Deadline representing not less than
Subject to satisfaction or waiver of the conditions to the consummation of the Exchange Offer, Azul expects that settlement of the Exchange Offer will occur promptly and will announce the settlement date in due course (the "Settlement Date").
On the Settlement Date, the Issuer expects that it will accept for exchange and settle the Exchange Offer for all Existing Notes validly tendered (and not validly withdrawn) for the Total Early Consideration. The Issuer will not pay, on the Settlement Date, any accrued and unpaid interest in cash with respect to the Existing Notes accepted for exchange by the Issuer. However, the interest commencement date for the New Notes issued pursuant to the Exchange Offer shall be November 28, 2024 (which is the start of the prevailing interest period for the Existing Notes on the Settlement Date).
In addition, as previously disclosed, the Issuer has received the requisite consents sufficient to effect the Proposed Amendments with respect to Existing Notes. Therefore, in accordance with the terms set forth in the Offering Memorandum, on the Settlement Date, the Issuer intends to execute a supplemental indenture to effectuate the Proposed Amendments to the terms of the Existing Notes.
Miscellaneous
The offering, issuance and sale of the New Notes have not been and will not be registered under the
No Offer or Solicitation
This press release does not constitute an offer to buy or the solicitation of an offer to sell the Existing Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to buy the New Notes, nor shall there be any sale of the New Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The New Notes will not be registered under the Securities Act or the securities laws of any state and may not be offered or sold in
The New Notes have not been and will not be issued or placed, distributed, offered or traded in the Brazilian capital markets. The issuance of the New Notes has not been nor will be registered with the CVM. Any public offering or distribution, as defined under Brazilian laws and regulations, of the New Notes in
None of the Issuer, the Guarantors, any of their respective directors or officers, the Information and Exchange Agent, or the Existing Notes Trustee, the New Notes Trustee, or in each case, any of their respective affiliates, made any recommendation as to whether Eligible Holders should tender or refrain from tendering all or any portion of the Existing Notes in response to the Exchange Offer, or deliver consents in response to the Solicitation. Eligible Holders were required to make their own decision as to whether to tender Existing Notes in the Exchange Offer and participate in the Solicitation and, if so, the principal amount of Existing Notes to tender.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the
In this press release, the words "believe," "understand," "may," "will," "aim," "estimate," "continue," "anticipate," "seek," "intend," "expect," "should," "could," "forecast" and similar words are intended to identify forward-looking statements. You should not place undue reliance on such statements, which speak only as of the date they were made. Except as required by applicable law, we do not undertake any obligation to update publicly or to revise any forward-looking statements after the date of this press release because of new information, future events or other factors. Our independent public auditors have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. In light of the risks and uncertainties described above, the future events and circumstances discussed in this press release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these forward-looking statements.
About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in
For more information visit https://ri.voeazul.com.br/en. Information on Azul's website does not constitute a part of this press release.
Media Contact: +1 203 658 9457 and +44 20 4513 6933 or by email at azul@investor.sodali.com
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