#None #São Paulo #Tender Offer #2028 Notes #Embraer

Embraer S.A.'s Cash Tender Offer for Senior Unsecured Notes

Embraer S.A. has recently provided early results from its cash tender offer for up to $150 million in outstanding 6.950% senior unsecured guaranteed notes, due in 2028. Following the company's announcement, significant interest has been evidenced by the amount of notes tendered in the offer.

Historically, Embraer has been a key player in the aerospace sector, actively managing its financing structure to optimize its capital. The recent tender offer represents an essential strategic move, designed to enhance its financial positioning and offer liquidity to bondholders.

Tender Offer Details

As per the announcement, the offer is specifically related to the 2028 Notes issued by Embraer Netherlands Finance B.V. and guaranteed unconditionally by Embraer S.A. The tender offer began on February 5, 2025, and is set to expire on March 6, 2025, unless extended or terminated.

Key Statistics

• - Total Outstanding Before Offer: $479,254,000
• - Principal Amount Tendered: $205,212,000
• - Principal Amount Accepted for Purchase: $150,000,000
• - Remaining Principal After Settlement: $329,254,000
• - Proration Factor: 60.3%
• - Reference U.S. Treasury Security: 4.250% due January 15, 2028

Given the figures, the offer has been greatly oversubscribed, indicating strong confidence among investors concerning Embraer's strategic direction. The proration reflects the ratio of total notes accepted to total notes tendered, signifying that not all offers can be fulfilled at the initial magnitude.

Implications and Settlement Date

The early settlement date for the accepted notes is anticipated to be February 21, 2025. Each holder of the accepted notes will receive their pro rata portion of the tendered amount at that time.

Holders took part in this tender offer, as any notes not accepted will be promptly returned or credited without additional charges to the holders' accounts. Embraer made clear that it will not accept any notes tendered after the early tender deadline of February 19, 2025.

Conclusion

As Embraer progresses with this tender offer, the early results serve as a vital indicator for market conditions and investor sentiment towards the company's financial strategies. With the deadline approaching, equity analysts and investors alike are keenly observing the developments and potential implications this action could have on Embraer’s financial health in the aerospace industry.

For additional information regarding this tender offer, interested parties can review the detailed Offer to Purchase available on official sites. They are encouraged to assess the terms comprehensively before making decisions regarding their securities.

In conclusion, Embraer's proactive measures in repurchasing part of its debt exemplify a strategic maneuver aimed at bolstering its financial foundation as it navigates the challenging landscape of the aerospace and defense sectors.