Announcement by Embraer S.A. of Early Results of Offer to Purchase for Cash Certain Outstanding 6.950% Senior Unsecured Guaranteed Notes due 2028
Rhea-AI Summary
Embraer S.A. (NYSE: ERJ) has announced the early results of its tender offer to purchase up to US$150 million of its outstanding 6.950% senior unsecured guaranteed notes due 2028. As of the early tender date (February 19, 2025), US$205,212,000 in aggregate principal amount was validly tendered, resulting in an oversubscription.
Due to oversubscription, Embraer will apply a proration factor of approximately 60.3% to the tendered notes. The company will not accept any additional tenders after the early tender date. The early settlement date is expected to be February 21, 2025, where holders will receive the Capped Total Consideration for accepted notes.
All conditions described in the Offer to Purchase have been satisfied, and Embraer has engaged multiple financial institutions as dealer managers for the tender offer, including Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, and PNC Capital Markets.
Positive
- Successful debt management initiative with strong investor participation (US$205.2M tendered vs US$150M target)
- All conditions for the tender offer have been satisfied
- Demonstrates company's ability to manage its debt obligations proactively
Negative
- Oversubscription means not all tendering noteholders will have their notes fully accepted (60.3% proration factor)
News Market Reaction – ERJ
On the day this news was published, ERJ gained 0.77%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SÃO PAULO, Feb. 20, 2025 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the early results of its previously announced offer to purchase for cash up to
The Tender Offer was made upon the terms and subject to the conditions set forth in the offer to purchase dated February 5, 2025 (the "Offer to Purchase") relating to the 2028 Notes. Information regarding the 2028 Notes and the early results of the Tender Offer is summarized in the following table:
Title of Security | CUSIP / ISIN | Principal Prior to the Tender Offer | Principal Amount Tendered | Principal Amount Accepted for Purchase | Principal Amount Outstanding Following the Settlement Date | Proration Factor(1) | Reference
| Bloomberg Reference Page(2) | Fixed Spread(3) | Capped Early Tender Payment(4) |
Notes due 2028 | Regulation S: USN29505AA70
Rule 144A: 29082H AC6 / | 60.3 % | January 15, 2028 | FIT1 | 80 bps |
_____________ | |
(1) | The proration factor has been rounded to the nearest tenth of a percentage point for presentation purposes. |
(2) | The applicable page on Bloomberg from which the Dealer Managers (as defined below) will quote the bid side price of the Reference |
(3) | Inclusive of Capped Early Tender Payment. |
(4) | Per |
Information on the Tender Offer
The Tender Offer is scheduled to expire at 5:00 p.m.,
D.F. King & Co., Inc., the tender agent and the information agent for the Tender Offer (the "Tender and Information Agent"), informed that, as of the Capped Early Tender Date,
As the aggregate principal amount of 2028 Notes validly tendered (and not validly withdrawn) by holders of 2028 Notes as of the Capped Early Tender Date exceeds the Maximum Principal Amount, the Tender Offer has been oversubscribed. Embraer has accepted for purchase 2028 Notes validly tendered (and not validly withdrawn) in the Tender Offer at or prior to the Capped Early Tender Date up to the Maximum Principal Amount, resulting in a proration factor of approximately
All conditions described in the Offer to Purchase, including the Financing Condition, have been satisfied, and Embraer has accepted for purchase 2028 Notes validly tendered (and not validly withdrawn) at or prior to the Capped Early Tender Date as prorated by the Proration Factor. Any tendered 2028 Notes that are not accepted for purchase will be returned or credited without expense to the holder's account.
As the aggregate principal amount of 2028 Notes validly tendered (and not validly withdrawn) by holders of 2028 Notes as of the Capped Early Tender Date exceeds the Maximum Principal Amount, Embraer will not accept for purchase any 2028 Notes tendered after the Capped Early Tender Date.
Conditions to the Tender Offer
The Tender Offer is not conditioned upon the tender of any minimum principal amount of 2028 Notes. However, the Tender Offer is subject to the Maximum Principal Amount. Embraer reserves the right to amend the Tender Offer at any time in its sole discretion, subject to compliance with applicable law and to not accept any tenders of 2028 Notes for any reason.
Settlement
Holders of 2028 Notes that have validly tendered and not validly withdrawn their 2028 Notes at or prior to the Capped Early Tender Date will receive the Capped Total Consideration on the early settlement date, which date is expected to be on February 21, 2025 (the "Capped Early Settlement Date"). Embraer will pay holders of the 2028 Notes validly tendered and accepted for purchase on a pro rata basis according to the proration procedures described in the Offer to Purchase.
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 at www.dfking.com/embraer and by request to the Tender and Information Agent. Requests for copies of the Offer to Purchase should be directed to the Tender and Information Agent at +1 (800) 829-6554 (toll free) and +1 (212) 269-5550 (collect) or by e-mail to embraer@dfking.com.
Embraer has engaged Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC to act as the dealer managers (the "Dealer Managers") in connection with the Tender Offer. The Dealer Managers can be contacted at their telephone numbers set forth on the back cover page of the Offer to Purchase with questions regarding the Tender Offer.
Disclaimer
None of Embraer, the Dealer Managers, the Tender and Information Agent, the trustee for the 2028 Notes, or any of their respective affiliates, is making any recommendation as to whether holders should or should not tender any 2028 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 2028 Notes must make their own decision as to whether to tender any of their 2028 Notes and, if so, the principal amount of 2028 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. The Tender Offer is being made solely by means of the Offer to Purchase. The Tender Offer is not being made to holders of the 2028 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
Embraer S.A.
Antonio Carlos Garcia
Head of Investor Relations
+55 (11) 3040-6874
View original content:SOURCE Embraer S.A.
FAQ
What is the maximum amount Embraer (ERJ) is offering to purchase in its 2028 Notes tender offer?
What was the total amount of ERJ notes tendered in the early tender period?
What is the proration factor for Embraer's (ERJ) 2028 Notes tender offer?
When is the early settlement date for Embraer's (ERJ) tender offer?
Will Embraer (ERJ) accept additional note tenders after the early tender date?
