São Paulo, July 12, 2023 – Azul S.A., “Azul”, (B3: AZUL4, NYSE: AZUL) (“Azul” or “Company”) announces today that its subsidiary, Azul Secured Finance LLP, a Delaware limited liability partnership, has launched a private offering of Senior Secured First Out Notes due 2028 (“Notes”). The offering of the Notes is part of the Company’s comprehensive and permanent restructuring plan to optimize its capital structure and increase its liquidity position.
Notes will be guaranteed by the Company and its subsidiaries Azul and Azul Linhas Aéreas Brasileiras S.A., IntelAzul S.A., ATS Viagens e Turismo Ltda., Azul IP Cayman Holdco Ltd., and Azul IP Cayman Ltd, and secured on a “first out” basis by a shared collateral package that will also secure certain other debt and other obligations. The shared collateral package comprises certain receivables generated by TudoAzul (Azul’s loyalty program), certain receivables generated by Azul Viagens (Azul’s travel package business) and certain brands, domain names and certain other intellectual property used by the Azul airline business (excluding Azul Cargo), TudoAzul and Azul Viagens. Payment priority relating to the Notes and such other debt and other obligations will be established pursuant to an intercreditor agreement.
Terms are subject to market and other conditions. There can be no assurance that Notes offering, and sale will be entered into and consummated.
The Company intends to use the net proceeds for repayment of certain existing debt and other obligations and for general corporate purposes.
Azul will keep investors and the general market updated on the progress of the offering.