Latest News

Brazil's Azul reaches handle bondholders for extra financing

Azul has reached a handle its existing group of shareholders to get additional financing, the Brazilian airline stated on Monday, as part of restructuring it anticipates to ease market concerns about its high debt load.

Azul controls Brazil's airline market along with LATAM and Gol, and has actually managed to prevent the fate of a variety of Latin American carriers who have applied for personal bankruptcy after the COVID-19 pandemic, including its two primary competitors.

The fresh capital was a condition of Azul's recent deal with lessors to ditch almost $550 million in commitments in exchange for an equity stake, which analysts see as essential to reinforce the airline company's cash position.

Under the handle bondholders, the carrier said in a. securities filing that Azul will receive $150 million this week. and another $250 million by year-end in fresh debt, totaling the. $ 400 million it had actually been targeting.

The contract, Azul added, may include another $100 million. in funding and a possible debt-for-equity swap of as much as. $ 800 million if the business handles to additional enhance its money. circulation by decreasing expenses by around $100 million per year.

It will enable a fast deleveraging of Azul, Chief. Executive John Rodgerson stated in an interview. They say, 'we. are creditors but want to be equity holders if we have this expense. reduction'. It is a choice, however I'm confident we'll take it.

Reuters reported last week, pointing out sources, that Azul was in. talks with several parties to raise about $400 million in fresh. capital through debt funding and that an arrangement was near.

(source: Reuters)