Azul has reached an agreement with debt holders to obtain additional financing, the airline said on Monday (28), as part of a restructuring that it hopes will be able to alleviate investor concerns about its financial situation.
The new capital was a condition of Azul’s recent agreement with lessors to shed nearly US$550 million in debt in exchange for an equity stake. This agreement was considered by analysts as fundamental to strengthening the airline’s cash position.
Under the agreement with bondholders, the airline will receive $150 million this week and another $250 million by the end of the year, bringing the total to the $400 million it had been trying to raise.
The agreement, Azul added, could include another US$100 million in financing and a possible exchange of debt for shares worth up to US$800 million, if the company manages to further improve its cash flow and reduce its costs. at around US$100 million per year.
“This will allow Azul to quickly deleverage,” said the airline’s chief executive, John Rodgerson.
Reuters reported last week, citing sources, that Azul was in talks with several parties to raise around US$400 million in new capital through debt financing and that a deal was close.
