Azul Announces Expiration and Final Results of Previously Announced Exchange Offers in respect of Existing 2029 Second Out Notes and Existing 2030 Second Out Notes for New Notes and Solicitations of Consents to Proposed Amendments to the Existing Indenture
Azul announces the completion of its exchange offers for its 2029 and 2030 Senior Secured Second Out Notes. The exchange offers, which expired on January 21, 2025, achieved significant participation rates: 98.02% of 2029 Notes and 94.51% of 2030 Notes were validly tendered, representing 95.55% of total outstanding notes.
The exchange offers exceeded the minimum requirement of 66.67% participation per series and 95% aggregate participation. The settlement will provide new notes with identical interest rates: 11.500% for 2029 Notes and 10.875% for 2030 Notes. Accrued interest will be paid in additional principal amount of New Notes rather than cash.
The completion remains subject to conditions including the issuance of at least $500 million in Superpriority Notes and the successful completion of the First Out Notes Exchange Offer.
Azul annuncia il completamento delle sue offerte di scambio per i 2029 e 2030 Senior Secured Second Out Notes. Le offerte di scambio, che sono scadute il 21 gennaio 2025, hanno ottenuto tassi di partecipazione significativi: 98,02% dei 2029 Notes e 94,51% dei 2030 Notes sono stati validamente offerti, rappresentando 95,55% del totale dei note in circolazione.
Le offerte di scambio hanno superato il requisito minimo di partecipazione del 66,67% per serie e del 95% di partecipazione complessiva. Il regolamento fornirà nuovi note con tassi di interesse identici: 11,500% per i 2029 Notes e 10,875% per i 2030 Notes. Gli interessi maturati saranno pagati sotto forma di importo principale aggiuntivo dei Nuovi Notes piuttosto che in contante.
Il completamento rimane soggetto a condizioni tra cui l'emissione di almeno $500 milioni in Superpriority Notes e il completamento con successo dell'offerta di scambio dei First Out Notes.
Azul anuncia la finalización de sus ofertas de intercambio para sus 2029 y 2030 Senior Secured Second Out Notes. Las ofertas de intercambio, que expiraron el 21 de enero de 2025, lograron tasas de participación significativas: 98,02% de los 2029 Notes y 94,51% de los 2030 Notes fueron válidamente presentados, representando 95,55% del total de notas en circulación.
Las ofertas de intercambio superaron el requisito mínimo de participación del 66,67% por serie y del 95% de participación agregada. El acuerdo proporcionará nuevas notas con tasas de interés idénticas: 11,500% para los 2029 Notes y 10,875% para los 2030 Notes. Los intereses acumulados se pagarán en forma de un monto principal adicional de las Nuevas Notas en lugar de efectivo.
La finalización sigue sujeta a condiciones, incluida la emisión de al menos $500 millones en Superpriority Notes y la finalización exitosa de la oferta de intercambio de First Out Notes.
아줄은 2029년 및 2030년 차세대 담보 부채 환매 공모를 완료했다고 발표했습니다. 2025년 1월 21일에 종료된 환매 공모는 상당한 참여율을 기록했습니다: 98.02%의 2029년 노트와 94.51%의 2030년 노트가 유효하게 제출되었으며, 이는 총 발행 노트의 95.55%를 차지합니다.
환매 공모는 각 시리즈의 최소 66.67% 참여 요구 사항과 95%의 총 참여를 초과했습니다. 정산은 동일한 이자율을 가진 새로운 노트를 제공할 것입니다: 2029년 노트는 11.500%, 2030년 노트는 10.875%입니다. 발생한 이자는 현금 대신 새로운 노트의 추가 원금으로 지급될 것입니다.
완료는 최소 $500 백만 달러의 슈퍼우선권 노출과 First Out Notes Exchange Offer의 성공적인 완료라는 조건에 따라 달라집니다.
Azul annonce l'achèvement de ses offres d'échange pour ses 2029 et 2030 Senior Secured Second Out Notes. Les offres d'échange, qui ont expiré le 21 janvier 2025, ont atteint des taux de participation significatifs : 98,02% des 2029 Notes et 94,51% des 2030 Notes ont été valablement soumises, représentant 95,55% du total des notes en circulation.
Les offres d'échange ont dépassé l'exigence minimale de participation de 66,67% par série et de 95% de participation agrégée. Le règlement fournira de nouvelles notes avec des taux d'intérêt identiques : 11,500% pour les 2029 Notes et 10,875% pour les 2030 Notes. Les intérêts accumulés seront payés sous forme de montant principal additionnel des Nouvelles Notes plutôt qu'en espèces.
L'achèvement reste soumis à des conditions, y compris l'émission d'au moins 500 millions de dollars en Superpriority Notes et la réussite de l'offre d'échange First Out Notes.
Azul kündigt den Abschluss seiner Tauschangebote für die 2029 und 2030 Senior Secured Second Out Notes an. Die Tauschangebote, die am 21. Januar 2025 abgelaufen sind, erzielten signifikante Teilnahmequoten: 98,02% der 2029 Notes und 94,51% der 2030 Notes wurden gültig angeboten, was 95,55% der insgesamt ausstehenden Notes entspricht.
Die Tauschangebote übertrafen die Mindestanforderung von 66,67% Teilnahme pro Serie und 95% Gesamtteilnahme. Der Abschluss wird neue Notes mit identischen Zinssätzen bereitstellen: 11,500% für die 2029 Notes und 10,875% für die 2030 Notes. Aufgelaufene Zinsen werden in Form eines zusätzlichen Hauptbetrags der neuen Notes und nicht in Bargeld ausgezahlt.
Der Abschluss bleibt an Bedingungen gebunden, einschließlich der Emission von mindestens $500 Millionen an Superpriority Notes und dem erfolgreichen Abschluss des First Out Notes Exchange Offer.
- High participation rates achieved: 98.02% for 2029 Notes and 94.51% for 2030 Notes
- Successfully exceeded minimum exchange conditions
- Received sufficient consents to implement proposed amendments
- No cash payment for accrued interest on existing notes
- Settlement still subject to multiple conditions including $500M Superpriority Notes issuance
Insights
The remarkably high participation rates in Azul's debt exchange offer - 98.02% for 2029 Notes and 94.51% for 2030 Notes - signal strong creditor confidence in the airline's restructuring strategy. This successful debt reorganization is particularly important for Azul's financial stability in the challenging airline sector.
The exchange maintains similar interest rates (11.500% for 2029 Notes and 10.875% for 2030 Notes) but likely includes modified terms that provide Azul with enhanced financial flexibility. A key aspect is the planned issuance of at least
For investors, this successful exchange reduces near-term default risks and indicates Azul's ability to maintain constructive relationships with creditors. The high participation rate is particularly impressive given the complex nature of the transaction, which included multiple series of notes and required various conditions to be met, including amendments to convertible debentures and collateral arrangements.
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 (i) offers by its wholly-owned subsidiary Azul Secured Finance LLP (the "Issuer") to Eligible Holders to exchange (the "Exchange Offers") (a) 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 Offers and the Solicitations 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 Offers and the Solicitations (the "Information and Exchange Agent") advised Azul that (i)
The obligation of the Issuer to complete the Exchange Offers and related Solicitations with respect to either series of Existing Notes 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 (a)
Subject to satisfaction or waiver of the conditions to the consummation of the Exchange Offers, Azul expects that settlement of the Exchange Offers 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 Offers 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, Eligible Holders of Existing Notes that are accepted for exchange by the Issuer will receive any such accrued and unpaid interest with respect to such Existing Notes in the form of additional principal amount of New Notes issued 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 of each series. 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 either of the Exchange Offers, or deliver consents in response to the Solicitations. Eligible Holders were required to make their own decision as to whether to tender Existing Notes in the Exchange Offers and participate in the Solicitations 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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FAQ
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