Notice to the Market - Embraer Financing

Rhea-AI Summary

Embraer (NYSE: ERJ) has finalized contracts with five banks for a total of US$ 300 million in working capital and export financing. This funding, which began disbursement in July 2020, will enhance the company's cash position for the remainder of 2020 and into 2021. The financing lines have maturities of two to four years and will support production until the products are shipped for export. Embraer is also exploring additional financing options to ensure a manageable long-term debt profile.

Positive

• Secured US$ 300 million in working capital and export financing.
• Funding reinforces cash position for the second half of 2020 and 2021.
• Financing with maturities of two to four years supports production phase.

Negative

• None.

SÃO JOSÉ DOS CAMPOS, Brazil, July 23, 2020 /PRNewswire/ -- Embraer (B3: EMBR3, NYSE: ERJ) informs the market and the general public that, in accordance with the communication published on June 15, 2020, it has concluded the signing of all definitive contracts with five private and public banks (Banco do Brasil, Bradesco, Morgan Stanley, Natixis, and Santander) as part of its working capital and export financing operation.

The disbursements, in a total value of US$ 300 million, have already begun and should be concluded by the end of July 2020, reinforcing the cash position of the Company for the second half of 2020 and for 2021.

These working capital financing lines have maturities of two to four years and the funds will be used during the production phase through the moment of product shipment for the export market.

The Company will continue to evaluate additional forms of financing in order to maintain a long-term indebtedness profile conducive to its business cycle.

Antonio Carlos Garcia
Executive Vice President of Finance and Investor Relations

PRESS OFFICES:

Headquarters (Brazil)

Corporate Communications
embraer@idealhks.com  
Cell: +55 11 98890 7777
Tel.: +55 11 4873 7984

North America

Alyssa Ten Eyck
ayeck@embraer.com  
Cell: +1 954 383 0460
Tel.: +1 954 359 3847

Europe, Middle East and Africa

Guy Douglas
guy.douglas@nl.embraer.com  
Cell: +31 (0)657120121
Tell: +31 (0)202158109

China

Mirage Zhong
mirage.zhong@bjs.embraer.com  
Cell:  +86 185 1378 5180
Tel.: +86 10 6598 9988

Asia Pacific

Nilma Missir-Boissac
nilma.boissac@sin.embraer.com  
Cell: +65 9012 8428
Tel.: +65 6305 9955

 

View original content:http://www.prnewswire.com/news-releases/notice-to-the-market---embraer-financing-301098773.html

SOURCE Embraer S.A.

FAQ

What is the significance of Embraer's recent financing announcement?

Embraer secured US$ 300 million in financing, enhancing its cash position for upcoming operations.

Which banks are involved in Embraer's financing deal?

The banks involved are Banco do Brasil, Bradesco, Morgan Stanley, Natixis, and Santander.

What will the financing from the banks be used for?

The funds will be used during the production phase until the products are shipped for export.

How long are the maturities of the financing contracts Embraer signed?

The financing lines have maturities of two to four years.

Is Embraer considering additional financing options?

Yes, Embraer is evaluating more financing options for a long-term debt profile.