EMBRAER S.A. NOTICE TO THE MARKET

Rhea-AI Summary

On October 17, 2022, Embraer S.A. (NYSE: ERJ) announced that its subsidiaries have secured a revolving credit line of up to US$630,000,000, potentially increasing to US$650,000,000 within 90 days. This facility, maturing on October 13, 2025, is backed by 14 international financial institutions and will accrue interest based on Term SOFR plus a margin. The funds can be utilized for general corporate purposes, and no amounts have been drawn as of the announcement. This facility aims to enhance liquidity and may include sustainability-linked features in the future.

Positive

• Secured a revolving credit line of up to US$650,000,000, enhancing liquidity.
• Interest rates favorable, tied to corporate rating, potentially improving credit score.
• Future inclusion of sustainability-linked features may enhance corporate reputation.

Negative

• None.

SÃO JOSÉ DOS CAMPOS, Brazil, Oct. 17, 2022 /PRNewswire/ -- Embraer S.A. (B3: EMBR3, NYSE: ERJ) (the "Company") informs its shareholders and the market that its subsidiaries Embraer Aircraft Holding Inc. and Embraer Netherlands Finance B.V., as borrowers (the "Borrowers"), have obtained a revolving credit line in the amount of up to US$630,000,000, which may be increased to US$650,000,000 within 90 days after the closing date, (the "Revolving Credit Facility"), maturing on October 13, 2025, with 14 international financial institutions. The Revolving Credit Facility is guaranteed by the Company and certain other subsidiaries of the Company (collectively, the "Guarantors"), and borrowings under the Revolving Credit Facility will accrue interest at a rate comprised of Term SOFR plus a margin of 1.50% or 1.85% per annum, depending on the corporate rating of the Company.

The Revolving Credit Facility may be amended in the next 12 months to include sustainability-linked features, which will provide for an annual adjustment to the applicable margin based on the performance of the Borrowers and the Guarantors against certain sustainability targets.

The Borrowers may use borrowings under the Revolving Credit Facility for general corporate purposes. As of the closing date, no amounts have been borrowed under the Revolving Credit Facility.

The Revolving Credit Facility is expected to increase the Company's liquidity and improve its credit rating, supporting the Company's liability management strategy.

São Jose dos Campos, October 17, 2022.

Antonio Carlos Garcia
Executive Vice-President and CFO

Certain information contained in this notice to the market constitutes "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, which may be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology or other forms of projections. Due to various risks and uncertainties, actual events or results may differ materially from that reflected or contemplated in such forward-looking statements or projections.

 

View original content:https://www.prnewswire.com/news-releases/embraer-sa-notice-to-the-market-301650879.html

SOURCE Embraer S.A.

FAQ

What is the amount of the revolving credit line secured by Embraer S.A.?

Embraer S.A. secured a revolving credit line of up to US$630,000,000, which may increase to US$650,000,000.

When does the revolving credit facility mature?

The revolving credit facility matures on October 13, 2025.

Who are the guarantors for the revolving credit facility?

The revolving credit facility is guaranteed by Embraer S.A. and certain subsidiaries.

What can the funds from the revolving credit line be used for?

The funds can be used for general corporate purposes.

What interest rates apply to the borrowings under the revolving credit facility?

Borrowings will accrue interest at a rate based on Term SOFR plus a margin of 1.50% or 1.85%, depending on the company's rating.