Azul Finalizes R$7.44 Billion Debt-for-Equity Share Issue as B3 Trading Terms Change

Overview

• Azul’s board homologated a R$7.44 billion capital increase tied to its recovery plan, issuing roughly 724 billion new ordinary shares and 724 billion new preferred shares.
• Per-share prices were set at about R$0.000135 for ordinaries and R$0.010145 for preferentials, raising R$97.9 million and R$7.34 billion, respectively.
• The transaction converts about R$7.4 billion of notes due 2028–2030 into equity, and accrued interest at 10.875% to 11.93% was forgiven as part of the deal.
• Following the operation, share capital stands near R$14.5 billion, with 725,990,305,836 ordinary shares and 724,757,380,468 preferred shares outstanding.
• On B3, existing preferred shares trade under code AZUL54 with 10,000-share lots, while ordinary shares and the new issuance begin trading on January 8 under code AZUL53 with 1,000,000-share lots; settlement is set for January 9 and investor credits for January 12.