Azul subsidiary Azul Secured Finance has launched a re-tap offering of $148.7 million 11.93% senior secured first out notes due 2028. The new notes will be guaranteed by Azul and its subsidiaries.
Azul will use the net proceeds to refinance its debt following its restructuring in 2023.
Fitch Ratings rated the senior secured notes reopening as B-/RR4, stating: ""Azul's ratings reflect its improved credit profile post restructuring plan during mid-2023, including enhanced liquidity, operating cash flow generation and leverage ratios.""
Citi had arranged Azul's original offer for the senior secured notes, with JP Morgan, Itaú BBA, Jefferies and UBS as joint bookrunners. The original offer, made in July 2023, was worth $800 million of 11.93% senior secured first out notes. The offering's collateral package comprised of certain receivables generated by Azul's loyalty program and travel package business along with other intellectual properties from the airlines, excluding its logistics business unit.
Azul launches $149 million re-tap offering
