Embraer reports strong demand in $150m tender for 2028 notes

Brazilian aerospace manufacturer Embraer announced the early results and pricing details of its cash tender offer for up to $150m of its outstanding 6.950% Senior Unsecured Guaranteed Notes due 2028.

The Brazilian aerospace manufacturer revealed strong noteholder participation, with $205,212,000 principal amount tendered, significantly exceeding the $150m maximum purchase amount.

Due to this oversubscription, Embraer applied a 60.3% proration factor in accepting notes for purchase.

The company will pay $1,045.99 per $1,000 principal amount for notes accepted in the tender offer, plus an early tender payment of $50.00 per $1,000 for notes tendered before the early deadline.

The pricing references the 4.250% US Treasury Security due January 15, 2028, with a fixed spread of 80 basis points, resulting in a reference yield of 4.278%.

Following the early settlement, $329,254,000 principal amount of the 2028 notes will remain outstanding, down from the initial $479,254,000.

The tender offer, launched on February 5, 2025, appears to be part of Embraer’s strategic debt management initiative, allowing the company to reduce its outstanding debt while taking advantage of current market conditions.

Embraer has engaged Citigroup Global Markets, Goldman Sachs & Co, J.P. Morgan Securities, Morgan Stanley & Co and PNC Capital Markets to act as the dealer managers for the tender offer.