Embraer launches tender offer for 2027 notes; prices new 2035 notes

Brazilian aerospace giant Embraer announced a cash tender offer for any and all of its outstanding 5.400% senior unsecured guaranteed notes due 2027.

The offer, made through its subsidiary Embraer Netherlands Finance, aims to repurchase the existing debt. The tender offer expires at 5:00 p.m. New York City time today.

The company said that holders who validly tender their 2027 notes will receive consideration, based on a fixed spread plus the yield of the Reference U.S. Treasury Security for the 2027 Notes as of 11:00 a.m. New York City time today.  Accrued interest will also be paid.  The settlement date is expected to be February 14, 2025.

Embraer prices $650m 2035 notes

In a separate announcement, Embraer revealed that its subsidiary, Embraer Netherlands Finance, has priced an offering of $650m in aggregate principal amount of 5.980% notes due 2035.

The notes, priced at 99.688% of principal amount and guaranteed by Embraer, are expected to be listed on the New York Stock Exchange.

Closing is anticipated on February 11, 2025.

Embraer plans to use the net proceeds from this offering to fund the repurchase of the 2027 notes tendered in the concurrent tender offer, and up to $150m of its 6.950% senior unsecured guaranteed notes due 2028, also subject to a tender offer.

Any remaining proceeds will be used for general corporate purposes.

Citigroup Global Markets, Goldman Sachs & Co, J.P. Morgan Securities, Morgan Stanley & Co, and PNC Capital Markets acted as global coordinators and joint bookrunners for the 2035 notes offering. BofA Securities, Banco Bradesco, Credit Agricole Securities, and Santander US Capital Markets served as joint bookrunners.