Azul Exits U.S. Chapter 11 With Slimmer Debt Load and New Backing From American and United

Overview

• Azul completed its exit on Feb. 20 after repaying debtor-in-possession financing and closing an equity offering.
• Loans and financings fell by about $1.1 billion, and aircraft lease obligations were reduced by roughly 40%.
• Annual interest payments are expected to decline by more than 50%, with recurring lease costs down about one third.
• The reorganization raised approximately $1.375 billion in senior notes and secured about $950 million in equity commitments.
• American Airlines and United Airlines committed $100 million each, with United increasing its stake in Azul to about 8%.