Embraer Finance B.V. Announces Pricing of $650 Million Notes
SÃO PAULO / — Embraer S.A. (NYSE: ERJ) has made headlines by unveiling its indirect subsidiary, Embraer Netherlands Finance B.V. The company priced an offering of US$650 million in 5.980% notes due in 2035, targeted at solidifying its financial foundation. These notes were offered at an issue price of 99.688% of principal and are set to be guaranteed by Embraer itself.
Key Features of the Note Offering
The notes are registered under the U.S. Securities Act of 1933 and are anticipated to be listed on the New York Stock Exchange. Closing of this offering is projected for a forthcoming date, as the company gears up for enhanced liquidity and operational flexibility.
Planned Use of Proceeds
Embraer plans to channel the net proceeds from this offering towards purchasing notes tendered in conjunction with concurrent tender offers. These tender offers aim to purchase a mix of senior unsecured guaranteed notes due 2027 and 2028. Specifically, Embraer intends to acquire any and all outstanding 5.400% senior unsecured guaranteed notes due 2027, as well as up to US$150 million in principal amount of the 6.950% notes due 2028.
Implications for General Corporate Purposes
This strategic move is expected not only to enhance Embraer’s liquidity but also to provide financial resources for general corporate purposes. By managing its debt profile effectively, Embraer can ensure ongoing investments in innovation and operational excellence.
Lead Underwriters of the Offering
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and PNC Capital Markets LLC are playing pivotal roles as global coordinators and joint bookrunners for the notes. Additionally, BofA Securities, Inc., Banco Bradesco BBI S.A., Credit Agricole Securities (USA) Inc., and Santander US Capital Markets LLC are also involved as joint bookrunners.
Important Publication for Investors
Embraer has duly filed a registration statement, which encompasses a prospectus with the U.S. Securities and Exchange Commission (SEC) for the notes offering. Investors are encouraged to review the prospectus and associated documents for comprehensive details about both Embraer and the note offering before making investment decisions.
Investor Access to Documents
For convenience, investors seeking access to these documents can visit the SEC’s EDGAR platform. Corresponding copies of the prospectus and its supplements can be requested through designated contacts within the underwriting firms involved, available via toll-free calls.
Legal Considerations Regarding the Offering
This announcement should not be misunderstood as an offer to sell or a solicitation to buy the notes or any other securities. Legal frameworks exist to regulate such offerings, making it crucial to adhere to all applicable laws.
Looking Ahead for Embraer
As Embraer continues to navigate the complexities of the financial landscape, efficient capital management through offerings like these highlights its commitment to strengthening its market position. The company remains steadfast in pursuing growth opportunities and delivering on its substantial product line and services.
Frequently Asked Questions
What are the terms of the notes issued by Embraer Finance B.V.?
The notes are issued at 5.980% due in 2035, and they’re priced at an issue price of 99.688% of principal amount.
How will Embraer use the proceeds from this offering?
The proceeds will help purchase outstanding notes and fund general corporate purposes.
Which firms are leading the underwriting process for the notes?
Key underwriters include Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, and PNC Capital Markets.
Where can investors find more information about the offering?
Investors can find detailed information in the prospectus filed with the SEC, available through their EDGAR platform.
Is this announcement an offer to sell securities?
No, this announcement does not constitute an offer to sell or solicit an offer to buy the notes.
