Announcement by Embraer S.A. of Offer to Purchase for Cash Certain Outstanding Securities Listed Below
Embraer S.A. (NYSE: ERJ) announced a cash tender offer for up to US$150.0 million of its 5.150% senior unsecured notes due 2022 and 5.696% senior unsecured guaranteed notes due 2023, each with a maximum tender amount subject to change. The offer expires on March 10, 2022, and holders who tender by February 24, 2022 will receive Total Consideration, including an early tender payment. Embraer’s obligation to purchase notes is conditioned upon various factors, and the company may acquire non-tendered notes in the future.
- Commencement of cash tender offer for up to US$150.0 million in notes.
- Eligible early tender participants will receive total consideration, enhancing liquidity.
- Conditioned obligation to purchase notes may limit cash flow if conditions are unmet.
- Potential for proration if tendered amounts exceed maximum tender amount.
SÃO PAULO, Feb. 10, 2022 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces commencement of an offer to purchase for cash outstanding
Payment per US | ||||||||||
Title of Security | CUSIP / ISIN | Principal Amount | Tender Offer | Early Tender | Total | |||||
| 29082AAA5 / | US | US | US | US | |||||
| Rule 144A: Regulation S: | US | US | US | US | |||||
__________________ |
(1) Excludes accrued and unpaid interest up to, but not including, the applicable Settlement Date (defined below) ("Accrued Interest"), which will be paid in addition to the applicable Tender Offer Consideration or Total Consideration, as the case may be. |
(2) Includes the Early Tender Payment. |
Information on the Tender Offer
The Tender Offer is scheduled to expire at 11:59 p.m., New York City time, on March 10, 2022, unless extended or earlier terminated by Embraer (such time and date, as it may be extended, the "Expiration Date"). Holders of Notes who validly tender (and do not validly withdraw) their Notes at or prior to 5:00 p.m., New York City time, on February 24, 2022, unless extended by Embraer (such time and date, as it may be extended, the "Early Tender Date") will be eligible to receive the applicable Total Consideration for such Notes, which includes the Early Tender Payment, plus the applicable Accrued Interest. Holders of Notes who validly tender their Notes after the Early Tender Date but at or prior to the Expiration Date in the manner described in the Offer to Purchase dated February10, 2022 and relating to the Tender Offer (the "Offer to Purchase") will not be eligible to receive the Early Tender Payment and will therefore only be eligible to receive the applicable Tender Offer Consideration, plus the applicable Accrued Interest. Validly tendered Notes may be validly withdrawn at any time prior to the Early Tender Date but not thereafter, except as may be required by applicable law (as determined by Embraer).
If the aggregate principal amount of a series of Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Date or the Expiration Date, as the case may be, represents consideration that exceeds the Maximum Tender Amount, a prorated amount of Notes of such series validly tendered (and not validly withdrawn) by holders at or prior to the Early Tender Date or the Expiration Date, as the case may be, will be accepted for purchase.
Settlement
Holders of Notes that have validly tendered and not validly withdrawn their Notes at or prior to the Early Tender Date and whose Notes are accepted for purchase shall, if Embraer so elects, receive the applicable Total Consideration, plus the applicable Accrued Interest, on the early settlement date, which date will be three business days following the Early Tender Date but before the Expiration Date (the "Early Settlement Date"). If Embraer does not, in its sole discretion, elect to pay for such tendered Notes prior to the Expiration Date, then the Early Settlement Date will be the same as the final settlement date, which date will be two business days following the Expiration Date (the "Final Settlement Date" and, together with the Early Settlement Date, each a "Settlement Date").
Conditions to the Tender Offer
Embraer's obligation to purchase Notes in the Tender Offer is conditioned on the satisfaction or waiver of a number of conditions described in the Offer to Purchase. The Tender Offer is not conditioned upon the tender of any minimum principal amount of Notes of such series or of the other series. However, the Tender Offer is subject to the Maximum Tender Amount. Embraer reserves the right, but is under no obligation, to increase or decrease the Maximum Tender Amount at any time, subject to compliance with applicable law. In the event of a termination of the Tender Offer, neither the applicable consideration nor Accrued Interest will be paid or become payable to the holders of the applicable series of Notes, and the Notes tendered pursuant to the Tender Offer will be promptly returned to the tendering holders. Embraer has the right, in its sole discretion, to not to accept any tenders of Notes for any reason and to amend or terminate the Tender Offer at any time.
Subsequent Redemptions or Repurchases
From time to time after consummation, termination or withdrawal of the Tender Offer, Embraer or any of its affiliates may acquire Notes that are not tendered or not accepted for purchase pursuant to the Tender Offer through open-market purchases, privately-negotiated transactions, tender offers, exchange offers, redemptions or otherwise, upon such terms and at such prices as Embraer or such affiliate may determine (or as may be provided for in the respective indenture governing the Notes), which may be more or less than the applicable purchase price to be paid pursuant to the Tender Offer and could be for cash or other consideration. It is currently Embraer's intention, but Embraer is under no obligation, to redeem the 2022 Notes via the make-whole call following the consummation, termination or withdrawal of the Tender Offer. There can be no assurance as to which, if any, of these alternatives or combinations thereof Embraer or its affiliates may choose to pursue in the future.
For More Information
The terms and conditions of the Tender Offer are described in the Offer to Purchase. Copies of the Offer to Purchase are available to holders of the Notes from D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer (the "Tender and Information Agent"). Requests for copies of the Offer to Purchase should be directed to the Tender and Information Agent at +1 (877) 732-3617 (toll free) and +1 (212) 269-5550 (collect) or by e-mail to embraer@dfking.com.
Embraer has engaged Banco Bradesco BBI S.A., Itau BBA USA Securities, Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC and Santander Investment Securities Inc. to act as the dealer managers (the "Dealer Managers") in connection with the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to Banco Bradesco BBI S.A. at +1 (646) 432-6642, Itau BBA USA Securities, Inc. at +1 (888) 770-4828 (toll free) or +1 (212) 710-6749 (collect), Morgan Stanley & Co. LLC at +1 (800) 624-1808 (toll free) or +1 (212) 761-1057 (collect), Natixis Securities Americas LLC at +1 (212) 891-6100 and Santander Investment Securities Inc. at +1 (855) 404-3636 (toll free) or +1 (212) 940-1442 (collect).
Disclaimer
None of Embraer, the Dealer Managers, the Tender and Information Agent, the trustee for the Notes or any of their respective affiliates is making any recommendation as to whether holders should or should not tender any Notes in response to the Tender Offer or expressing any opinion as to whether the terms of the Tender Offer are fair to any holder. Holders of the Notes must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of Notes to tender. Please refer to the Offer to Purchase for a description of the offer terms, conditions, disclaimers and other information applicable to the Tender Offer.
This press release is for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities. The Tender Offer is being made solely by means of the Offer to Purchase. Embraer is making the Tender Offer only in those jurisdictions where it is legal to do so. The Tender Offer is not being made to holders of the Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In those jurisdictions where the securities, blue sky or other laws require any tender offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of Embraer by the Dealer Managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, including those related to the Tender Offer. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements.
Embraer S.A.
Antonio Carlos Garcia
Head of Investor Relations
+55 (11) 3040-6874
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SOURCE Embraer S.A.
FAQ
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