Azul has obtained around R$600 million ($105.9 million) in additional funding from its existing bondholders. The agreement strengthens Azul's liquidity position after the debt conversion where 35% of the notes due in 2029 and 2030 were converted into preferred shares.
The Brazilian real denominated secured notes are issued by Azul Secured Finance and guaranteed by Azul. The notes are secured by certain credit and debit card receivables generated by its passenger airline business. The notes have a maturity of six months and are prepayable in the event that Azul receives any public-backed financing.
The Brazilian airline added that it is continuing to work with stakeholders to improve its financial position.