Embraer subsidiary Embraer Netherlands Finance has priced its new $1bn unsecured bond with a 5.4% coupon.
The bond matures on January 9, 2038.
Following the issuance, Embraer also disclosed that Morgan Stanley, acting as offeror in its ongoing cash tender offers, has increased the maximum purchase amount for its outstanding 6.950% notes due 2028 and 7.000% notes due 2030. The cap has been increased to $1bn, up from $750 million.
Fitch rated the notes BBB-. The ratings agency said the rating reflects Embraer's “growing product and geographic diversification, increasing revenue visibility in the medium term, and expected profitability improvements from scale gains and cost-cutting initiatives.” Fitch added that supply chain bottlenecks have eased and are expected to normalise during next year, further supporting Embraer's profile.
All of the other company's tender offers remain unchanged and its previously tendered notes remain valid.