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 AAZUL.CJ 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.