Embraer extends US$1 billion syndicated credit line for five years

The agreement reinforces the company’s liquidity for the coming years

São José dos Campos, Brazil, August 6, 2024 – Embraer (NYSE: ERJ; B3: EMBR3) has today signed an US$ 1 billion syndicated credit agreement for five years. The deal is an extension of a US$ 650 million syndicated credit operation announced in October 2022. The contract provides the company with important access to financial resources at pre-negotiated rates.

Led by banks PNC Bank, Crédit Agricole, Citibank, and with the participation of institutions such as BNP Paribas, Mizuho, Bank of America, Sumitomo Mitsui Bank Corporation, Natixis, JP Morgan, MUFG, Santander, Banco do Brasil, Commerzbank, Morgan Stanley, Bradesco, and Goldman Sachs, the agreement allows access to a revolving credit line that can be used by Embraer's subsidiaries in the U.S. and the Netherlands, with Embraer S.A. as its guarantor.

"The extension of a significant syndicated credit line reinforces Embraer’s liquidity for the next five years, providing important support for our long-term strategy. Our partnership with strong and marquee financial institutions reinforces Embraer's credit quality. For instance, S&P recently raised our rating to investment grade, and we believe this new RCF will be an important support for us to regain full investment grade status across all the rating agencies in the near future," highlighted Antonio Carlos Garcia, CFO of Embraer.

Earlier this year, S&P Global Ratings raised Embraer's rating from “BB+” to “BBB-” and maintained a stable outlook. According to S&P, Embraer’s strong cash generation allied with higher aircraft deliveries, cost reduction, and efficiency measures led to free cash flow in 2023 which was considerably stronger than the company’s guidance to the market. Fitch Ratings also revised the company’s BB+ with a positive outlook, while Moody’s raised the rating to Ba1 and maintained a stable outlook.