#Brazil #São Paulo #Exchange Offers #secured notes #Azul S.A.

Azul S.A. Extends Exchange Offers for Secured Notes

On January 16, 2025, Azul S.A., Brazil’s largest airline, revealed a significant extension of its previously announced exchange offers concerning 2029 and 2030 Secured Notes. The decision to postpone the expiration date aims to encourage more eligible holders to take part in these offers by enabling a longer period for participation.

Key Details of the Exchange Offers

The extension modifies the original deadline from January 15 to January 21, 2025, allowing interested parties additional time to tender their existing notes. Azul’s wholly-owned subsidiary, Azul Secured Finance LLP, is leading the initiative. Until now, impressive participation percentages have been reported: 98.02% for the 2029 notes and 94.42% for the 2030 notes. These numbers highlight a strong interest among investors.

Objectives and Conditions of the Exchange

To successfully complete these exchange offers – exchanging existing notes for newly issued ones – Azul needs to meet several conditions, particularly a minimum of 95% of the total principal amount tendered. The airline is optimistic that these conditions can be met, given the high percentage already tendered. Additionally, holders who participated by the Early Participation Deadline are set to receive additional incentives.

Solicitation of Consents for Proposed Amendments

Simultaneous to the exchange offers, Azul is also seeking consents for proposed modifications to the existing indenture governing the notes. As of the previous expiration date, sufficient consent has been obtained to proceed with these amendments, which are crucial for the overall restructuring efforts initiated by Azul.

Future Expectations

Azul’s management anticipates announcing the settlement date a few days ahead of the extended expiration deadline. If the issuer further extends the offers, additional disclosures will be made publicly to ensure transparency and compliance with regulations.

Historical Performance and Future Outlook

Azul has earned accolades for its operational efficiency, including recognition as the world's most on-time airline in 2022. This reputation reflects the company's strong commitment to customer service and operational excellence, attributes that might positively influence investor sentiment during the current exchange offer.

Given the evolving landscape of the aviation industry, Azul's strategic moves, including these exchange offers, aim to solidify its financial standing while enhancing operational capabilities. The company continues to engage with its stakeholders to ensure they are well-informed about these developments.

This extension represents a proactive strategy in the face of a challenging economic backdrop, providing stakeholders ample opportunity to participate in Azul's future.

For further details about the exchange offers and to access the necessary documents, eligible holders can visit Azul’s dedicated page at Azul Investor Relations.

In summary, Azul S.A. is navigating a significant corporate restructuring through these exchange offers while maintaining strong communication with its investors, reflecting best practices in corporate governance and stakeholder engagement.