Image: Azul
Commercial
Aviation
/ Americas
financial restructuring
To reduce its aircraft leasing debts, Azul announces a bond exchange
By: Rafael Ramos
On: 6/13/2023
Airbus A320neo
CC BY-SA 2.0, via wikimedia commons
Azul announced that it will launch offers to exchange senior debt securities that mature in 2024 and 2026.
The new securities mature in 2029 and 2030. The securities total US$ 1 billion. The airline's announcement comes after an agreement with aircraft leasing companies that included shares and convertible debt in exchange for lower payments, which helped reduce expenses with aircraft leasing by a total of 5.4 billion reais in the long term.
"The market was looking a lot at Azul's debt, which is going to mature in the short term... We are going to get all the short-term debt out of our way and that will give a lot of track for Azul to take off for real now", the president told Reuters -Azul executive, John Rodgerson.
The offer includes the exchange of securities maturing in 2024, with a yield of 5.875%, for debt securities with secondary guarantee, maturing in 2029 and yielding 11.500%; and securities that expire in 2026 and pay 7.250%, for securities with secondary guarantee for 2030 and remuneration of 10.875%.
The company justifies the new higher interest rates because of the complex global scenario. However, the airline says the move will be beneficial for both the company and bondholders.
"We are structuring all of this to finish and solve all the short-term problems that we had", stated Rodgerson.
Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
|
|