Azul has confirmed that a group accounting for roughly 86% of holders of bonds expiring in 2024 and 2026 have agreed to the exchange offer proposed by the company to delay its maturities to 2029 and 2030.
The offer had been announced by the company earlier this month as part of a broader restructuring plan that also included deals with aircraft lessors for lower payments, with initially 65.5% of the bondholders having agreed with it.
Speaking to Reuters, Alex Malfitani, chief financial officer, Azul said: “It's a very positive figure. That leaves us in a very solid financial position, with no more doubts on whether we would be able to roll over that debt."
Azul expects the exchange offer for bonds totalling $1 billion to remove an overhang on its stock as it deals with high short-term indebtedness, even though it had to increase interest paid on those notes against a backdrop of high borrowing costs.
As the early participation phase of the offer concluded the airline described as a high level of acceptance.
The aggregate participation level in the exchange offer includes 72.8% of holders of bonds due on 2024, totalling $291.17 million, and 94.6% of holders of notes expiring in 2026, accounting for $567.6 million, Azul said.
The airline is also gearing up to raise additional capital.