Announcement by Embraer S.A. of Early Results of Offer to Purchase for Cash Certain Outstanding Securities Listed Below, Change in Consideration for 2025 Notes and Notice of Optional Redemption of 2025 Notes
- The early results of the tender offer indicate a positive response from holders of the outstanding notes, with a significant amount of principal amount tendered. The redemption of the 2025 Notes and the acceptance for purchase of the tendered notes demonstrate Embraer's commitment to managing its debt obligations and optimizing its financial position.
- None.
SÃO PAULO, Aug. 8, 2023 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the early results of its previously announced offer to purchase for cash up to
The 2025 Notes will be redeemed on September 7, 2023 (the "Redemption Date") at a redemption price (the "Redemption Price") equal to
Except for the change with respect to the consideration for the 2025 Notes, there are no other modifications being made with respect to the Tender Offer. The complete terms and conditions of the Tender Offer are set forth in the offer to purchase dated July 25, 2023, as amended by the press release dated July 27, 2023 (the "Offer to Purchase").
The following table sets forth the material terms of the Tender Offer:
Payment per | ||||||||||||||||
Title of | CUSIP / ISIN | Principal | Principal | Principal | Acceptance | Tender Offer | Early | Total | ||||||||
Unsecured Guaranteed Notes due 2028 | Regulation S: N29505 AA7 / USN29505AA70
Rule 144A: 29082H AC6 / US29082HAC60 | 189,346,000 | 714,000,000 | 1 | ||||||||||||
Unsecured Guaranteed Notes due 2025 | 29082H AA0 / US29082HAA05 | 39,120,000 | 420,867,000 | 2 | ||||||||||||
Unsecured Guaranteed Notes due 2027 | 29082HAB8 / US29082HAB87 | 204,327,000 | 730,000,000 | 3 | ||||||||||||
(1) | Excludes accrued and unpaid interest up to, but not including, the applicable Settlement Date (as defined herein) ("Accrued Interest"), which will be paid in addition to the Tender Offer Consideration or Total Consideration, as applicable. | ||||||
(2) | Includes the Early Tender Payment. | ||||||
(3) | Amended from | ||||||
(4) | Amended from | ||||||
(5) | Amended from | ||||||
Information on the Tender Offer
The Tender Offer is scheduled to expire at 5:00 p.m.,
As of the Early Tender Date,
Holders of Notes who validly tender their Notes after the Early Tender Date but at or prior to the Expiration Date in the manner described in the Offer to Purchase will only be eligible to receive the applicable Tender Offer Consideration, plus the applicable Accrued Interest.
If the aggregate principal amount of a series of Notes validly tendered (and not validly withdrawn) at or prior to the Expiration Date represents an aggregate principal amount that exceeds the Maximum Tender Amount, based on the order of priority (the "Acceptance Priority Level") for such series of Notes set forth in the table above and as otherwise described in the Offer to Purchase, a prorated amount of Notes of such series validly tendered (and not validly withdrawn) by holders at or prior to the Expiration Date will be accepted for purchase.
Settlement
Holders of Notes that have validly tendered and not validly withdrawn their Notes at or prior to the Early Tender Date will receive the applicable Total Consideration, plus the applicable Accrued Interest, on the early settlement date, which date will be three business days following the Early Tender Date but before the Expiration Date (the "Early Settlement Date"). The final settlement date will be two business days following the Expiration Date (the "Final Settlement Date" and, together with the Early Settlement Date, each a "Settlement Date").
Conditions to the Tender Offer
Embraer's obligation to purchase Notes in the Tender Offer is conditioned on the satisfaction or waiver of a number of conditions, including the receipt by us of proceeds from a proposed debt financing on terms reasonably satisfactory to Embraer's sole discretion and subject to applicable law (the "Debt Financing"), as described in the Offer to Purchase, which has been satisfied. The Tender Offer is not conditioned upon the tender of any minimum principal amount of Notes of such series or of the other series. However, the Tender Offer is subject to the Maximum Tender Amount. Embraer reserves the right, but is under no obligation, to increase or decrease the Maximum Tender Amount at any time, subject to compliance with applicable law. In the event of a termination of the Tender Offer, neither the applicable consideration nor Accrued Interest will be paid or become payable to the holders of the applicable series of Notes, and the Notes tendered pursuant to the Tender Offer will be promptly returned to the tendering holders.
Subsequent Redemptions or Repurchases; Redemption of 2025 Notes
From time to time after consummation of the Tender Offer, Embraer or any of its affiliates may acquire Notes that are not tendered or not accepted for purchase pursuant to the Tender Offer through open-market purchases, privately-negotiated transactions, tender offers, exchange offers, redemptions or otherwise, upon such terms and at such prices as Embraer or such affiliate may determine (or as may be provided for in the respective indenture governing the Notes), which may be more or less than the applicable purchase price to be paid pursuant to the Tender Offer and could be for cash or other consideration. Embraer has, on this date, delivered notice of optional redemption of all outstanding 2025 Notes via the make-whole call.
For More Information
The terms and conditions of the Tender Offer are described in the Offer to Purchase. Copies of the Offer to Purchase are available to holders of the Notes from D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer (the "Tender and Information Agent"). Requests for copies of the Offer to Purchase should be directed to the Tender and Information Agent at +1 (877) 732-3619 (toll free) and +1 (212) 269-5550 (collect) or by e-mail to embraer@dfking.com.
Embraer has engaged Credit Agricole Securities (
Disclaimer
None of Embraer, the Dealer Managers, the Tender and Information Agent, the trustee for the Notes or any of their respective affiliates is making any recommendation as to whether holders should or should not tender any Notes in response to the Tender Offer or expressing any opinion as to whether the terms of the Tender Offer are fair to any holder. Holders of the Notes must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of Notes to tender. Please refer to the Offer to Purchase for a description of the offer terms, conditions, disclaimers and other information applicable to the Tender Offer.
This press release is for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities, nor does it constitute a notice of redemption of the 2025 Notes. The Tender Offer is being made solely by means of the Offer to Purchase. Embraer is making the Tender Offer only in those jurisdictions where it is legal to do so. The Tender Offer is not being made to holders of the Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In those jurisdictions where the securities, blue sky or other laws require any tender offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of Embraer by the Dealer Managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the
Embraer S.A.
Antonio Carlos Garcia
Head of Investor Relations
+55 (11) 3040-6874
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