Azul Stock Rebounds After R$7.4 Billion Debt-for-Equity Swap Triggers Steep Selloff

Overview

• Azul issued roughly 723.9 billion new common shares and 723.9 billion new preferred shares that now trade on B3 as AZUL53 and AZUL54 with standard lots of 1,000,000 and 10,000, respectively.
• The stock plunged more than 60% on January 8 after auction halts and, despite a roughly 160% bounce on January 9, remains far below prior levels this year.
• The offer priced common shares at R$0.00013527 (raising R$97.9 million) and preferred shares at R$0.01014509 (raising R$7.34 billion).
• The transaction converts about R$7.4 billion of 2028–2030 notes into equity, and coupon payments of 10.875% to 11.93% were forgiven.
• Azul’s capital now totals about R$14.57 billion across roughly 1.45 trillion shares; participants received subscription warrants, with settlement on January 9 and credits expected January 12.