Embraer Announces Detailed Information about Its Tender Offer for 2028 Notes
São Paulo, Brazil, February 20, 2025 – Embraer S.A. (“Embraer”), a leading global aerospace company based in Brazil (NYSE: ERJ), is thrilled to provide more information about its previously announced tender offer (the “Tender Offer”) for up to US$150,000,000 (the “Maximum Principal Amount”) in aggregate principal amount of the outstanding 6.950% senior unsecured guaranteed notes due 2028 (the “2028 Notes”) issued by Embraer Netherlands Finance B.V.
Key Terms of the Tender Offer
Embraer is offering to purchase for cash (the “Purchase Price”) all of the outstanding 2028 Notes. The total consideration for each US$1,000 principal amount of 2028 Notes validly tendered and not withdrawn will be equal to the Purchase Price plus accrued and unpaid interest up to, but not including, the Settlement Date. The Purchase Price is currently set at 101.000% of the principal amount of the 2028 Notes, plus accrued and unpaid interest.
Important Dates
The Tender Offer commenced on February 13, 2025, and will expire at 5:00 p.m., New York City time, on March 13, 2025, unless extended (the “Expiration Date”). The Settlement Date is expected to be on March 17, 2025.
Why is Embraer Making this Offer?
Embraer is making this offer to improve its capital structure and financial flexibility. By purchasing these notes, Embraer can reduce its debt and allocate resources to other areas of its business, such as research and development, or potentially returning capital to shareholders.
Impact on Individual Investors
For individual investors holding 2028 Notes, this tender offer presents an opportunity to sell their notes back to Embraer at a premium to their face value. If you are a holder of these notes and are considering participating in the tender offer, it is essential to review the Offer to Purchase and related documents carefully and consult with your financial advisor before making a decision.
Impact on the World
Embraer’s tender offer for its 2028 Notes is a significant event in the global aerospace industry. This move demonstrates Embraer’s commitment to improving its financial position and could potentially influence other companies in the industry to follow suit. Moreover, the successful execution of this tender offer could set a positive precedent for Embraer as it continues to navigate the ever-changing market conditions.
Conclusion
Embraer’s tender offer for its 2028 Notes represents an important step in the company’s ongoing efforts to strengthen its financial position and capital structure. For individual investors holding these notes, this tender offer presents an opportunity to sell their notes back to Embraer at a premium. For the global aerospace industry, this move could set a positive precedent and potentially influence other companies to follow suit. As always, it is crucial for investors to review the Offer to Purchase and related documents carefully and consult with their financial advisors before making any decisions.
- Embraer S.A. announces tender offer for up to US$150 million of its 6.950% senior unsecured guaranteed notes due 2028
- Offer price is currently set at 101.000% of the principal amount, plus accrued and unpaid interest
- Tender offer commenced on February 13, 2025, and will expire on March 13, 2025
- Embraer aims to improve its capital structure and financial flexibility by purchasing these notes
- Individual investors holding 2028 Notes have the opportunity to sell their notes back to Embraer at a premium
- Successful execution of this tender offer could set a positive precedent for Embraer and the aerospace industry
