Azul Announces Offering of Debt Securities and Update its Credit Rating Report

Core Viewpoint - Azul S.A. has launched a private offering of senior secured notes due 2031 to provide exit financing as part of its restructuring plan under Chapter 11 of the U.S. Bankruptcy Code, aimed at optimizing its capital structure and enhancing liquidity [1][2]. Offering Details - The offering is intended to repay the outstanding principal of its debtor-in-possession (DIP) financing and support the implementation of a comprehensive restructuring plan [2]. - The notes will be guaranteed by the company and its subsidiaries, secured by first-priority liens on a collateral package that includes receivables from its loyalty program, travel package business, and cargo business, as well as intellectual property and shares of subsidiaries [3]. Market Conditions - The terms of the offering are subject to market and other conditions, and there is no assurance that the offering or sale of the notes will be completed [4]. Regulatory Compliance - The notes have not been registered with the Brazilian Securities Commission (CVM) or the Securities and Exchange Commission (SEC) and will not be sold in Brazil except under specific circumstances [5]. Credit Rating Updates - Moody's Ratings has assigned a B2 rating to the company and the securities of the exit financing offering, while Fitch Ratings has assigned an expected B- rating, both with stable outlooks [6]. - The ratings reflect the implementation of steps outlined in the Chapter 11 Plan [7]. Company Operations - The company continues to implement its Chapter 11 Plan with focus and discipline, maintaining consistency in execution and transparency for stakeholders [8]. - Azul S.A. is the largest airline in Brazil, operating approximately 800 daily flights to over 137 destinations with a fleet of over 200 aircraft [9].