Brazil's Azul secures $1.37 billion in five-year bond offering

By Gabriel Araujo and Luciana Magalhaes

SAO PAULO, Jan 30 (Reuters) - Brazilian airline Azul secured $1.37 billion in a bond issue, the company said in a securities filing ?on Friday, in a key step toward exiting Chapter 11 bankruptcy proceedings.

The ?coupon for the secured notes, which are ?due 2031, was set at 9.875%, the ?firm said, ?adding the issue is expected to be concluded on February 6.

The amount ?exceeded the $1.21 billion initially ?expected, as demand for the transaction reached more than $9 billion.

Reuters reported the amount secured ?and the priced coupon earlier ?in ?the day, with two sources familiar with the matter also saying the issue's yield was set ?at 10.125%. Azul announced this week that it would launch secured notes to provide exit financing in connection with its restructuring plan, approved by a U.S. court in December.

The carrier said it was ?seeking ?to repay the outstanding principal amount of its debtor-in-possession (DIP) financing and, with any remaining amount, support ?its restructuring and enhance its liquidity position. Azul filed for Chapter 11 bankruptcy in New York in May 2025, aiming to cut its debt and make its business more resilient to market challenges like fluctuations in fuel prices and ?currency exchange rates.

The airline has said it expects to exit bankruptcy proceedings in February.

(Reporting by Gabriel Araujo and Luciana Magalhaes; Additional reporting by ?Fernando Cardoso; Editing by Will Dunham and Chizu Nomiyama )