Brazil's Azul says 86% of bondholders have agreed with exchange offer

Brazilian airline Azul said on Wednesday that a group accounting for roughly 86% of holders of bonds expiring in 2024 and 2026 have agreed with an exchange offer proposed by the company to delay their maturities to 2029 and 2030. The offer had been announced by the company earlier this month as part of a broader restructuring plan that also included deals with aircraft lessors for lower payments, with initially 65.5% of the bondholders having agreed with it. Now, with the early participation phase of the offer concluded, the carrier celebrated what it described as a high level of acceptance. “It’s a very positive figure,” Azul CFO Alex Malfitani said. “That leaves us in a very solid financial position, with no more doubts on whether we would be able to roll over that debt.” Azul expects the exchange offer for bonds totaling $1b to remove an overhang on its stock as it deals with high short-term indebtedness, even though it had to increase interest paid on those notes against a backdrop of high borrowing costs. “It’s part of the game,” Malfitani said, adding the coupon Azul managed to negotiate with creditors was “palatable and fitting well within our business model and cash flow.”<br/>