Brazil’s Azul works on best-efforts local placement of debentures

Chicago, June 14 – Azul Linhas is working to place on a best-efforts basis R$600 million of non-convertible debentures, according to a 6-K filing that comprehensively detailed several restructuring transactions the company is concurrently undertaking.

Interest will be floating, at the CDI rate plus 600 basis points. The maturity date is June 1, 2024.

The offering is being made to professional investors only, and only in Brazil.

Azul SA will be the guarantor.

The debentures will be secured with credit card receivables generated by airline ticket sales.

Proceeds will be used to fund payments for fuel supplied to Azul Linhas by Raizen SA.

If there is a default, Raizen will cease to supply fuel to the company.

Closing is expected during the June 12 week.

Azul is a Sao Paulo-based airline.

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