Azul Markets $1.21 Billion in Dollar Bonds to Fund Chapter 11 Exit

Overview

• The offer totals about $1.21 billion split between $1.0 billion due 2031 and $210 million due 2033, coordinated by Citi and UBS BB.
• Moody’s assigned a B2 corporate rating with a stable outlook and projects adjusted gross leverage trending toward about 3x in 2026–2027 with adequate liquidity.
• Fitch posted expected long‑term ratings of B‑(EXP) with an RR4 recovery rating, withdrew prior ‘D’ issuer default ratings, and said final ratings depend on definitive documents.
• The notes will be issued by U.S. subsidiary Azul Secured Finance LLP and are secured by cash flows from the loyalty, vacations, and cargo units plus brands, IP, and subsidiary stakes.
• Azul says the transaction will repay DIP debt and support its capital plan, with completion subject to market conditions, and a first‑quarter emergence from Chapter 11 expected after U.S. court approval.