In an announcement for investors this Thursday, Azul SA announced an overseas offering of US$800 million of senior debt securities with priority guarantee and with a yield of 11,930% and maturity in 2028 (“Debt Bonds”). The offer is part of the Company's comprehensive and ongoing restructuring plan to optimize the capital structure and increase the liquidity position.
The Debt Securities will be guaranteed by the Company and its subsidiaries Azul and Azul Linhas Aéreas Brasileiras SA, IntelAzul SA, ATS Viagens e Turismo Ltda., Azul IP Cayman Holdco Ltd. and Azul IP Cayman Ltd and secured on a primary basis by a shared guarantee package which will also secure other debts and other obligations. The shared guarantee package comprises certain receivables generated by TudoAzul (the Company's loyalty program), certain receivables generated by Azul Viagens (the Company's travel package business) and certain brands, domain names and certain other intellectual properties used by the airline business from Azul (excluding Azul Cargo), TudoAzul and Azul Viagens. Priority of payment with respect to the Notes and these other debts and other obligations will be established pursuant to an agreement between creditors.
The issuance is expected to close on July 20, 2023, and is subject to customary closing conditions.
The company intends to use liquid proceeds for the payment of certain existing debts and other obligations and also for other corporate purposes.
Azul will keep investors and the market in general updated on the progress of the issuance of the Debt Securities.
Interview for journalists
In an interview with journalists, the CEO of Azul John Rodgerson said that this is the last part of the restructuring that began with the pandemic.
John highlighted that the demand for flights is very strong and the resource will be essential to help the airline to better manage its business. “We will invest again,” he said. He pointed out, however, plans that were in the drawer due to lack of resources, such as the possibility of having a hangar in Minas Gerais.
Alexandre Wagner Malfitani, CFO and Investor Relations Director, explained that negotiations were initially carried out with the lessors, who have 80% of the original debt. After that, the company talked to creditors through the exchange offer announced about a month ago. “When we saw that the exchange offer was in high demand, we started talking in the market about the potential injection of new capital into Azul to take advantage of this good market moment,” he said.
Alexandre Wagner Malfitani, CFO and Investor Relations Director, explained that negotiations were initially carried out with the lessors, who have 80% of the original debt. After that, the company talked to creditors through the exchange offer announced about a month ago. “When we saw that the exchange offer was in high demand, we started talking in the market about the potential injection of new capital into Azul to take advantage of this good market moment,” he said.
