US shares of Azul rise after deal with bondholders
Updates
** Shares of Brazilian airline Azul AZUL.N up 10.5% at $3.10
** Co reaches a deal with bondholders to obtain additional financing as part of restructuring that it expects will ease market concerns about its debt load
** Azul will receive $150 mln this week and another $250 mln by year end, filing says
** Deal may include another $100 mln in financing and a potential debt-for-equity swap of as much as $800 mln if AZUL manages to further improve its cash flow, reducing costs by around $100 mln per year
** The fresh capital was a condition of Azul's recent deal with lessors to scrap nearly $550 mln in obligations in exchange for an equity stake of around 20% of the firm
** Azul has managed to avoid the fate of a number of Latin American carriers that filed for bankruptcy after the COVID-19 pandemic
** Including session's move, stock down about 68% YTD
Reporting by Sukriti Gupta in Bengaluru
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
