Azul has made an announcement regarding the launch of a private offering of Senior Secured First Out Notes due 2028 (Notes) through its subsidiary, Azul Secured Finance LLP, a Delaware limited liability partnership. This offering is a crucial component of the company’s comprehensive and permanent restructuring plan, aimed at optimising its capital structure and enhancing liquidity.
The Notes will be guaranteed by Azul and its subsidiaries, namely Azul Linhas Aéreas Brasileiras S.A., IntelAzul S.A., ATS Viagens e Turismo Ltda., Azul IP Cayman Holdco Ltd., and Azul IP Cayman Ltd. These Notes will be secured on a “first out” basis by a shared collateral package that will also secure certain other debts and obligations. The collateral package will include specific receivables generated by TudoAzul (Azul’s loyalty programme) and Azul Viagens (Azul’s travel package business), as well as select brands, domain names, and other intellectual property associated with the Azul airline business (excluding Azul Cargo), TudoAzul, and Azul Viagens.
An intercreditor agreement will determine the payment priority concerning the Notes, as well as other debts and obligations. The terms of the offering are subject to market and other conditions, and there is no guarantee that the Notes offering and sale will be completed. The net proceeds from the offering will be utilised by the company to repay existing debts and obligations, and for general corporate purposes. Azul is committed to keeping investors and the general market informed about the progress of this offering.
