Azul Announces Extension of the 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 S.A. announced the extension of its exchange offers deadline from January 15, 2025, to January 21, 2025, 5:00 p.m. NYC time. The exchange offers involve the company's 11.500% Senior Secured Second Out Notes due 2029 and 10.875% Senior Secured Second Out Notes due 2030.
As of the original deadline, 98.02% of 2029 Notes and 94.42% of 2030 Notes were validly tendered, representing 95.48% of total outstanding notes, successfully meeting the minimum 95% exchange condition. The withdrawal deadline expired on January 7, 2025, and holders can no longer withdraw tendered notes.
The exchange offers are subject to conditions including amendments to convertible debentures, issuance of at least $500 million in Superpriority Notes, and completion of First Out Notes Exchange Offer. The First Out Notes Exchange has achieved 99.69% participation, exceeding the required 66.67% threshold.
Azul S.A. ha annunciato l'estensione della scadenza delle sue offerte di scambio dal 15 gennaio 2025 al 21 gennaio 2025, alle 17:00 ora di New York. Le offerte di scambio riguardano i 11,500% Senior Secured Second Out Notes in scadenza nel 2029 e i 10,875% Senior Secured Second Out Notes in scadenza nel 2030.
Alla scadenza originale, il 98,02% delle Note 2029 e il 94,42% delle Note 2030 erano state valide e presentate, rappresentando il 95,48% del totale delle note emesse, soddisfacendo con successo la condizione minima di scambio del 95%. La scadenza per il ritiro è scaduta il 7 gennaio 2025, e i possessori non possono più ritirare le note presentate.
Le offerte di scambio sono soggette a condizioni che includono modifiche ai prestiti convertibili, emissione di almeno 500 milioni di dollari in Superpriority Notes e completamento dell'Offerta di Scambio delle First Out Notes. L'Offerta di Scambio delle First Out Notes ha raggiunto una partecipazione del 99,69%, superando la soglia richiesta del 66,67%.
Azul S.A. anunció la extensión del plazo de sus ofertas de intercambio del 15 de enero de 2025 al 21 de enero de 2025, a las 5:00 p.m. hora de Nueva York. Las ofertas de intercambio involucran los 11.500% Senior Secured Second Out Notes que vencen en 2029 y los 10.875% Senior Secured Second Out Notes que vencen en 2030.
Hasta la fecha límite original, se presentó válidamente el 98.02% de las Notas 2029 y el 94.42% de las Notas 2030, lo que representa el 95.48% del total de notas pendientes, cumpliendo exitosamente con la condición mínima de intercambio del 95%. La fecha límite para retirar expiró el 7 de enero de 2025, y los tenedores ya no pueden retirar las notas presentadas.
Las ofertas de intercambio están sujetas a condiciones que incluyen enmiendas a los bonos convertibles, la emisión de al menos 500 millones de dólares en Superpriority Notes, y la finalización de la Oferta de Intercambio de First Out Notes. La Oferta de Intercambio de First Out Notes ha alcanzado una participación del 99.69%, superando el umbral requerido del 66.67%.
Azul S.A.는 교환 제안의 기한을 2025년 1월 15일에서 2025년 1월 21일 오후 5시(뉴욕 시간)로 연장한다고 발표했습니다. 교환 제안은 2029년 만기 11.500% Senior Secured Second Out Notes와 2030년 만기 10.875% Senior Secured Second Out Notes를 포함합니다.
원래 마감일까지 98.02%의 2029년 노트와 94.42%의 2030년 노트가 유효하게 제출되어 총 미발행 노트의 95.48%를 나타내며, 최소 95% 교환 조건을 성공적으로 충족하였습니다. 철회 마감일은 2025년 1월 7일이었으며, 보유자는 더 이상 제출된 노트를 철회할 수 없습니다.
교환 제안은 전환 가능한 채권 수정, 최소 5억 달러의 Superpriority Notes 발행, First Out Notes 교환 제안 완료 등 여러 조건을 충족해야 합니다. First Out Notes 교환은 99.69%의 참여율을 기록하여 요구되는 66.67%의 임계값을 초과하였습니다.
Azul S.A. a annoncé l'extension de la date limite de ses offres d'échange du 15 janvier 2025 au 21 janvier 2025, à 17h00, heure de New York. Les offres d'échange concernent les 11,500% Senior Secured Second Out Notes arrivant à échéance en 2029 et les 10,875% Senior Secured Second Out Notes arrivant à échéance en 2030.
A la date limite initiale, 98,02% des notes 2029 et 94,42% des notes 2030 avaient été correctement proposées, représentant 95,48% du total des titres émis, répondant ainsi avec succès à la condition d'échange minimale de 95%. La date limite de retrait a expiré le 7 janvier 2025, et les détenteurs ne peuvent plus retirer les titres proposés.
Les offres d'échange sont soumises à des conditions, y compris des amendements aux obligations convertibles, l'émission d'au moins 500 millions de dollars en Superpriority Notes, et l'achèvement de l'offre d'échange des First Out Notes. L'offre d'échange des First Out Notes a atteint un taux de participation de 99,69%, dépassant le seuil requis de 66,67%.
Azul S.A. hat die Frist für ihre Umtauschangebote von 15. Januar 2025 auf 21. Januar 2025, 17:00 Uhr New Yorker Zeit, verlängert. Die Umtauschangebote betreffen die 11,500% Senior Secured Second Out Notes mit Fälligkeit 2029 und die 10,875% Senior Secured Second Out Notes mit Fälligkeit 2030.
Zum ursprünglichen Stichtag wurden 98,02% der 2029-Notes und 94,42% der 2030-Notes gültig eingereicht, was 95,48% der insgesamt ausstehenden Anleihen entspricht und die erforderliche Mindestverhältnis von 95% erfolgreich erfüllt. Die Frist zur Abhebung lief am 7. Januar 2025 ab, und die Inhaber können eingereichte Anleihen nicht mehr abheben.
Die Umtauschangebote unterliegen Bedingungen, die Änderungen an wandelbaren Anleihen, die Emission von mindestens 500 Millionen Dollar in Superpriority Notes und den Abschluss des First Out Notes Austauschangebots umfassen. Der First Out Notes Austausch hat eine Teilnahmequote von 99,69% erreicht, was die erforderliche Schwelle von 66,67% übertrifft.
- High participation rate with 95.48% of total notes tendered, exceeding minimum threshold
- Strong acceptance of First Out Notes Exchange with 99.69% participation
- Successfully met minimum exchange condition of 95%
- Additional debt restructuring required through issuance of $500 million Superpriority Notes
- Complex debt reorganization indicating potential financial stress
Insights
This debt restructuring announcement reveals critical developments in Azul's financial reorganization. The company has achieved 98.02% participation for 2029 notes and 94.42% for 2030 notes, surpassing the important 95.48% minimum threshold for both series combined. This high participation rate demonstrates strong creditor support for the restructuring plan.
The extension of the exchange deadline to January 21, 2025, coupled with the successful achievement of the 1L Participation Condition at 99.69%, indicates the restructuring is progressing favorably. The planned issuance of at least
The new notes maintain the same interest rates as the existing ones (
The exchange offer's legal framework has been meticulously structured to comply with securities regulations across multiple jurisdictions. The restriction of participation to Eligible Holders and the detailed compliance measures regarding U.S. Securities Act requirements demonstrate robust legal risk management.
The successful receipt of requisite consents for the Proposed Amendments to the Existing Notes Indenture is legally significant, as it enables necessary modifications to the debt structure. The careful consideration of Brazilian securities laws, including explicit statements about non-registration with CVM and restrictions on public offering in Brazil, shows comprehensive legal compliance planning.
The withdrawal deadline expiration without extension provides transaction certainty, while the detailed conditions precedent protect stakeholder interests. The prohibition on Competitor participation in the new notes adds a strategic legal protection layer for the company.
SÃO PAULO, Jan. 16, 2025 /PRNewswire/ -- Azul S.A., "Azul," (B3: AZUL4, NYSE: AZUL) ("Azul") today announced that its wholly-owned subsidiary Azul Secured Finance LLP (the "Issuer") has extended the expiration deadline of its previously announced offers to exchange (the "Exchange Offers") (i) 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.
Extension of Expiration Deadline
The Issuer hereby extends the expiration deadline for the Exchange Offers from 11:59 p.m.,
Original Expiration Deadline Results for the Exchange Offers
As of the Original 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 is subject to the receipt of Existing Notes validly tendered (and not validly withdrawn) prior to the Extended Expiration Deadline representing not less than
The Withdrawal Deadline for each of the Exchange Offers expired at 5:00 p.m.,
Upon the terms and subject to the conditions set forth in the Offering Memorandum, Eligible Holders who validly tendered Existing Notes and delivered related Consents by the Early Participation Deadline and who did not validly withdraw tendered Existing Notes and did not revoke such Consents at or prior to the Withdrawal Deadline, and whose Existing Notes are accepted for exchange by the Issuer, will receive the applicable Total Early Exchange Consideration.
Original Expiration Deadline Results for the Consent Solicitation
As previously announced, simultaneously with the Exchange Offers, the Issuer is conducting a Solicitation of Consents from Eligible Holders of the Existing Notes to effect the Proposed Amendments to the Existing Notes Indenture. As of the Original Expiration Deadline, the Information and Exchange Agent advised Azul that the Issuer has received the requisite Consents sufficient to effect the Proposed Amendments with respect to Existing Notes of each series.
Conditions to the Consummation of the Exchange Offers
The obligation of the Issuer to complete an Exchange Offer and related Solicitation with respect to either series of Existing Notes is subject to certain conditions described in the Offering Memorandum (the "Conditions"), which include (i) the Minimum Exchange Condition, (ii) certain amendments to the indenture (escritura de emissão de debêntures) governing the convertible debentures issued by Azul and certain collateral and other documents are required to be amended or replaced in respect of such convertible debentures, (iii) the issuance of at least
The Information and Exchange Agent has advised Azul that, as of the original expiration deadline for the First Out Notes Exchange Offer (which has also been extended to the Extended Expiration Deadline),
Miscellaneous
Except as amended by this press release and the press release dated January 8, 2025, the terms and conditions of the Exchange Offers and the Solicitations, as previously announced and described in the Offering Memorandum, remain unchanged. Azul provided certain information relating to the Exchange Offers and the Solicitations in Forms 6-K furnished to the Securities and Exchange Commission on December 18, 2024, January 8, 2025 and January 16, 2025.
The offering, issuance and sale of the New Notes have not been and will not be registered under the
Holders who desire to obtain and complete an eligibility certification and access the Offering Memorandum should visit the website for this purpose at https://projects.sodali.com/azul or contact the Information and Exchange Agent. Requests for documentation and questions regarding the Exchange Offers and the Solicitations can be directed to Sodali & Co at its telephone numbers +1 203 658 9457 and +44 20 4513 6933 or by email at azul@investor.sodali.com.
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, makes 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 will need 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.
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