Azul (AZUL) said Monday it has negotiated a deal with its current bondholders for up to $500 million in additional financing.
Under the terms, the company anticipates receiving $150 million this week and $250 million before the end of the year, with potential to unlock an additional $100 million, Azul said in its 6-K filing with the US Securities and Exchange Commission.
The transaction also includes agreements to improve cash flow by reducing obligations to certain lessors and OEMs over the next 18 months and the potential equitization of up to $800 million of existing debt, conditional on additional cash flow improvements of about $100 million per year, according to the company.
Shares of Azul rose more than 7% in recent Monday premarket activity.
Price: 3.0000, Change: +0.20, Percent Change: +7.14
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.