Azul S.A. American Depositary Shares (each representing three preferred shares) - AZUL STOCK NEWS

Azul S.A. announced the extension of its exchange offers deadline from January 15, 2025, to January 21, 2025, 5:00 p.m. NYC time. The exchange offers involve the company's 11.500% Senior Secured Second Out Notes due 2029 and 10.875% Senior Secured Second Out Notes due 2030.

As of the original deadline, 98.02% of 2029 Notes and 94.42% of 2030 Notes were validly tendered, representing 95.48% of total outstanding notes, successfully meeting the minimum 95% exchange condition. The withdrawal deadline expired on January 7, 2025, and holders can no longer withdraw tendered notes.

The exchange offers are subject to conditions including amendments to convertible debentures, issuance of at least $500 million in Superpriority Notes, and completion of First Out Notes Exchange Offer. The First Out Notes Exchange has achieved 99.69% participation, exceeding the required 66.67% threshold.

Azul and Abra (majority investor of Gol and Avianca) have signed a non-binding Memorandum of Understanding (MoU) to combine their businesses in Brazil. The intended merger between Azul and Gol aims to strengthen Brazil's aviation sector globally, with the companies having approximately 90% complementary and non-overlapping routes.

While maintaining separate operating certificates and brands, the combination seeks to expand destinations, routes, connectivity, and services. The merger would serve more than 200 cities in Brazil, potentially increasing domestic and international flight offerings. The agreement includes governance and capital structure arrangements, with net leverage of the combined entity expected to be comparable to Gol's leverage post-reorganization.

The transaction's completion depends on various factors, including economic terms agreement, due diligence, definitive agreements, regulatory approvals, and the consummation of Gol's Chapter 11 reorganization plan.

Azul announced early participation results for its exchange offers of existing 2029 and 2030 Second Out Notes. As of January 7, 2025, 97.8% of 2029 Notes and 94.4% of 2030 Notes were validly tendered, representing 95.4% of total outstanding principal amount for both series combined.

The Minimum Exchange Condition requiring 95% participation has been satisfied. The withdrawal deadline expired on January 7, 2025, and holders can no longer withdraw tendered notes. The company amended the terms to offer the Total Early Exchange Consideration to holders who tender after the Early Participation Deadline but before the January 15, 2025 Expiration Deadline.

Settlement is expected on January 22, 2025. The exchange offers are subject to conditions including the issuance of at least $500 million in Superpriority Notes and the First Out Notes Exchange Offer, which has achieved 99.6% participation.

Azul announced early participation results for its exchange offer of 11.930% Senior Secured First Out Notes due 2028. As of January 7, 2025, 99.6% of the outstanding principal amount of Existing Notes had been validly tendered, surpassing the minimum exchange condition of 66.67%.

The company also received sufficient consents to amend the Existing Notes Indenture. Eligible holders who tender notes before the Expiration Deadline (January 15, 2025) will receive the Total Early Exchange Consideration. The settlement date is expected to be January 22, 2025.

Additionally, 95.4% of the aggregate principal amount of Existing Second Out Notes had been tendered, satisfying the 2L Participation Condition requirement of 95%. The exchange offer includes the issuance of at least US$500,000,000 in Superpriority Notes.

Azul announced exchange offers for its existing 2029 and 2030 Senior Secured Second Out Notes through its subsidiary Azul Secured Finance LLP. The exchange offers include:

- 11.500% Senior Secured Second Out Notes due 2029 (US$245.17M outstanding) for new 2029 Notes

- 10.875% Senior Secured Second Out Notes due 2030 (US$583.67M outstanding) for new 2030 Notes

The exchange includes an early participation premium and November 2024 PIK interest cash payment. The company requires minimum 95% participation across both series. Supporting noteholders representing over 66.67% have agreed to participate. The early participation deadline is January 7, 2025, and the final deadline is January 15, 2025. The settlement is expected by January 22, 2025.

Azul announced that its subsidiary Azul Secured Finance LLP has launched an exchange offer for all outstanding 11.930% Senior Secured First Out Notes due 2028. Eligible holders can exchange existing notes for new notes with the same interest rate and maturity. The exchange offer includes an early participation premium and a November 2024 PIK interest cash payment.

The early participation deadline is January 7, 2025, with a final expiration on January 15, 2025. The exchange requires minimum participation of 66.67% of outstanding notes. Supporting noteholders representing over 66.67% have already agreed to participate. The settlement is expected on January 22, 2025, coinciding with the closing of Superpriority Notes.

Azul, Brazil's largest airline, has successfully completed negotiations with aircraft lessors and bondholders, securing significant financial agreements. The company has obtained commitments for US$ 500 million in new investments, with US$ 150 million to be funded immediately, US$ 250 million upon documentation completion, and US$ 100 million pending additional conditions.

The airline has renegotiated 98% of its obligations with lessors and OEMs, resulting in US$ 550 million in finalized agreements and potential debt reduction exceeding US$ 800 million. Azul expects a 15% capacity increase in Q4 2024, with eight new aircraft arriving by year-end. The airline will operate 43,300 flights during the Brazilian summer season, including 3,048 extra flights.

Azul, Brazil's largest airline, has partnered with Viasat Inc. (NASDAQ: VSAT) to equip seven new Airbus A330-900neo aircraft with advanced Ka-band in-flight connectivity. The first equipped aircraft is set to enter service in 2025. This expansion builds on their successful collaboration since 2021, when Azul became the first South American airline to offer Viasat's in-flight internet service.

Passengers will enjoy gate-to-gate internet access, with options for streaming, web browsing, and messaging. Azul is also adopting Viasat's Advertising platform to enhance the passenger Wi-Fi experience with ad-supported streaming sessions. This partnership aims to meet the growing demand for high-quality, consistent in-flight Wi-Fi, leveraging Viasat's high-throughput satellite capacity and ability to flex that capacity to meet demand in busy areas.

Azul and GOL have initiated a codeshare agreement, starting July 11, 2024, to provide more travel options across Brazil.

This partnership includes 40 non-overlapping routes, with 20 already available on Azul's sales channels.

The companies aim to enhance connectivity and offer customers more flight and destination choices. The codeshare will create over 2,700 travel opportunities with just one connection within Brazil.

Customers can accumulate points or miles from either airline's loyalty programs when purchasing codeshare flights through the respective companies' digital channels.

Check-in and baggage procedures will follow the rules of the operating airline or the first leg of the journey.