Brazil airline Azul launches share offer to raise up to $700 million

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Brazil airline Azul launches share offer to raise up to $700 million

, Reuters - 2:25 PM ET 4/14/2025 default

April 14 (Reuters) - Brazilian airline Azul ( AZUL ) has launched a primary share sale of up to 4.1 billion reais ($700.1 million) as part of its financial restructuring process, it said in a securities filing on Monday.

The company said part of the amount raised will be used to implement a previously announced debt-for-equity swap, while the remainder would aim to pay off administrative, marketing and sales expenses.

Azul ( AZUL ) is initially offering some 450 million non-voting shares at 3.58 reais each, a 19% premium over Friday's closing price. The firm is also offering up to around 698 million non-voting shares in a potential additional allotment.

Sao Paulo-traded shares in Azul ( AZUL ) were up over 8% in the afternoon at 3.25 reais each, leading gains among firms on Brazil's equity benchmark index Bovespa, which was up 1.3%.

Azul ( AZUL ) said it will give shareholders a subscription bonus for each share purchased in the deal. The bonus could be converted into a new share between mid-November and mid-December of next year.

Shares purchased in the offer can be traded in the market starting on April 25. BTG Pactual, UBS BB and Citi are deal's bookrunners, Azul ( AZUL ) said.

($1 = 5.8561 reais) (Reporting by Andre Romani and Isabel Teles; Editing by Kylie Madry)

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