São Paulo, July 13, 2023 – Azul S.A., (B3: AZUL4, NYSE: AZUL) announces today that its subsidiary, Azul Secured Finance LLP, a Delaware limited liability partnership, has priced a private offering of US$800 million aggregate principal amount of 11.930% Senior Secured First Out Notes due 2028 (“Notes”). The offering is the last part of the comprehensive and permanent restructuring plan to optimize the Company’s 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.
The issuance of the Notes is expected to close on July 20, 2023, subject to customary closing conditions.
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 issuance of the Notes.