Notice to the Market - Embraer Financing

Embraer (NYSE: ERJ) announced the completion of contracts for working capital and export financing totaling up to US$ 600 million, with a maturity period of up to four years.

Rhea-AI Summary

Embraer (NYSE: ERJ) announced the completion of contracts for working capital and export financing totaling up to US$ 600 million, with a maturity period of up to four years. The financing is split between US$ 300 million from the Brazilian National Bank of Economic and Social Development (BNDES) and US$ 300 million from private and public banks. This debt financing will enhance the company's cash position, ensuring funds are available from production to export. The operation does not affect Embraer's shareholding structure.

Positive

• Secured US$ 600 million in financing to improve cash position.
• Split financing ensures a balanced approach between BNDES and other banks.

Negative

• None.

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SÃO JOSÉ DOS CAMPOS, Brazil, June 15, 2020 /PRNewswire/ -- Embraer (B3: EMBR3, NYSE: ERJ) informs the market and the general public that, as part of its diligent management of indebtedness and liquidity, it has finalized the terms of contracts for working capital and export financing of a total of up to US$ 600 million, with up to four years until maturity.

An amount of up to US$ 300 million will be financed via the Brazilian National Bank of Economic and Social Development (BNDES), and the remaining value of up to US$ 300 million will come from private and public banks, maintaining the proportion of 50/50.

These working capital financial lines, generally available to exporting companies, will further reinforce the cash position of the Company, guaranteeing funds from the production phase through the moment of product shipment for the export market.  

This type of operation is exclusively debt and does not alter the shareholding structure of Embraer. The Company will continue to evaluate additional forms of financing in order to maintain a long-term indebtedness profile conducive to its business cycle. 

Antonio Carlos Garcia
Executive Vice President of Finance and Investor Relations

PRESS OFFICES:

Headquarters (Brazil)

Corporate Communications
embraer@idealhks.com  
Cell: +55 11 98890 7777
Tel.: +55 11 4873 7984

North America

Alyssa Ten Eyck
ayeck@embraer.com  
Cell: +1 954 383 0460
Tel.: +1 954 359 3847

Europe, Middle East and Africa

Guy Douglas
guy.douglas@nl.embraer.com  
Cell: +31 (0)657120121
Tell: +31 (0)202158109

China

Mirage Zhong
mirage.zhong@bjs.embraer.com  
Cell:  +86 185 1378 5180
Tel.: +86 10 6598 9988

Asia Pacific

Nilma Missir-Boissac
nilma.boissac@sin.embraer.com  
Cell: +65 9012 8428
Tel.: +65 6305 9955

View original content:http://www.prnewswire.com/news-releases/notice-to-the-market---embraer-financing-301077235.html

SOURCE Embraer S.A.

FAQ

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What financing has Embraer (ERJ) secured?

Embraer has secured up to US$ 600 million in working capital and export financing.

How is Embraer's financing structured?

The financing includes US$ 300 million from BNDES and US$ 300 million from private and public banks.

What is the maturity period for Embraer's financing?

The financing has a maturity period of up to four years.

Will the financing affect Embraer’s shareholding structure?

No, the operation will not alter Embraer's shareholding structure.