Embraer has closed a US$650 million revolving credit facility (RCF) with a group of national and international financial institutions. The objective of the agreement, the first of its kind for the company since 2010, is to regain access to financial resources for three years at pre-negotiated rates, which can be renewed for another two years at the lenders’ discretion.
Led by banks PNC Bank, Crédit Agricole, Natixis, MUFG, Santander and with other lender support from around the globe, the facility allows access to the revolving credit line that can be used by Embraer's subsidiaries in the US and the Netherlands, with Embraer S.A. as its guarantor.
"This operation reinforces Embraer's liquidity for the coming years and consolidates the company's credibility with Brazilian and international financial institutions that trust and believe in the company's credit. It will help us on our credit rating in the long term," said Embraer CFO, Antonio Carlos Garcia.
Embraer has also closed a US$100 million credit transaction to finance purchases of supplies made by Embraer in the UK. The credit has been granted by JPMorgan Chase Bank, London Branch and guaranteed by UK Export Finance. This is the first time that UK Export Finance has been involved in an operation with Embraer.
The credit operation between UK Export Finance, JPMorgan, and Embraer will bring several benefits to the company, such as diversification of credit operations and more competitive rates and terms for Embraer's loan profile.
"The diversification of our credit operations is significant in all regions of the world where Embraer operates. We are always looking for actions that improve the profile of our debt, and this is another step in that direction," said Garcia.