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SÃO PAULO - Brazilian aircraft manufacturer Embraer S.A. (NYSE:ERJ), currently valued at $11.04 billion and maintaining a GREAT financial health score according to InvestingPro, announced Tuesday it has increased the maximum amount for its cash tender offers from $750 million to $1 billion. The company’s stock has shown remarkable strength, delivering a 64.48% return year-to-date.
The tender offers apply to outstanding 6.950% senior unsecured guaranteed notes due 2028 and 7.000% senior unsecured guaranteed notes due 2030, both issued by Embraer Netherlands Finance B.V. and guaranteed by Embraer.
The company attributed the increase to its successful pricing of $1 billion aggregate principal amount of 5.400% senior unsecured guaranteed notes due 2038.
The offers are scheduled to expire at 5:00 p.m., New York City time, on October 21, 2025. Noteholders who tender their notes by October 3, 2025, will be eligible to receive the total consideration, while those who tender after this early date but before the expiration date will only receive the tender consideration without the early tender payment. The stock currently trades near its 52-week high of $62.09, reflecting strong investor confidence in the company’s financial management.
If the aggregate principal amount of notes tendered exceeds the new maximum amount, Embraer will accept notes on a prorated basis according to the acceptance priority levels outlined in the offer documents.
The settlement date for early tenders is expected to occur two business days following the early tender date, while the final settlement date will be two business days after the expiration date.
Morgan Stanley & Co. LLC is acting as the dealer manager for the offers, with D.F. King & Co., Inc. serving as the tender agent and information agent.
This information is based on a press release statement from Embraer.
In other recent news, Embraer has announced a significant order from LATAM Airlines for up to 74 E195-E2 jets, including 24 firm orders and 50 options. The firm orders are valued at approximately $2.1 billion at list prices, with deliveries expected to commence in the second half of 2026. This marks LATAM’s first acquisition of Embraer’s EJet family, aimed at enhancing connectivity across South America. Following this development, Itau BBA has reiterated its Outperform rating on Embraer, maintaining a price target of $69.00. Additionally, S&P Global Ratings has upgraded Embraer to ’BBB’ from ’BBB-’, citing the company’s strengthened business position and increased backlog. In other company news, workers at Embraer’s Brazilian facilities have ended a strike and returned to work after a dispute over wage increases. These developments highlight Embraer’s ongoing efforts to expand its market presence and strengthen its operational capabilities.
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