Azul S.A. Statement on the Successful Settlement of Public Convertible Debentures

Knighthead Capital Management and Certares Management acted as anchor investors of the offering

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Nov 15, 2020, 16:55 ET

SAO PAULO, Nov. 15, 2020 /PRNewswire/ -- Azul S.A. (B3: AZUL4, NYSE: AZUL) and its partners celebrate the successful settlement of its public offering of convertible debentures in Brazil. The settlement took place on Nov 12 and the official settlement announcement can be found on the Azul Investor Relations website. Financial advisors to the company included Seabury Securities LLC, a US investment banking firm and Itau BBA, a Brazilian investment bank which acted as sole underwriter for the public offer.

"We want to thank all of our financial partners for their support during this process. Together with our anchor investors Knighthead and Certares, we are setting the stage for a successful long-term partnership. Azul's strategic competitive advantages and unique business model, combined with the strong market recovery in Brazil, lead to us to be optimistic about our future. The successful conclusion of this public offering ensures that we are in a position to be a long-term winner," says John Rodgerson, Chief Executive Officer at Azul.

"Since its founding in 2008, Azul has executed one of the most creative and ambitious business plans in aviation," said Tom Wagner, Founder of Knighthead Capital Management. "Amidst uncertainty around COVID-19, this transaction provides the airline with one of the best liquidity positions in the global industry. Brazil has been an excellent and resilient air travel market for several years, and Azul's strong balance sheet and market position set the stage for its future success. We are excited to partner with management as the company grows in the years ahead."

"Azul is a premier airline that has been recognized globally for delivering great customer experiences and consistently strong financial performance," said Tom Klein Senior Managing Director at Certares. "That, coupled with Azul's being strategically positioned for growth and a long term winner in Latin American aviation, makes partnering with its respected management team ideal for Certares."

About Azul

Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 916 daily flights to 116 destinations. With an operating fleet of 140 aircraft and more than 13,000 crewmembers, the Company has a network of 249 non-stop routes as of December 31, 2019. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian Flag Carrier ranked number one in the Traveler's Choice Awards. Azul was also recognized in 2019 as best regional carrier in South America for the ninth consecutive year by Skytrax. Additionally, in 2019, Azul ranked among the top ten most on–time low-cost carriers in the world, according to OAG. For more information visit www.voeazul.com.br/ir.

About Knighthead

Established in 2008, Knighthead Capital Management's credit platform combines bottom-up fundamental research with top-down macro analysis to identify investment opportunities across the capital structure. Led by co-founders Tom Wagner and Ara Cohen, the experienced investment team seeks to achieve superior risk-adjusted returns in distressed investments via fundamental analysis and driving restructuring processes. The $4.5 billion platform is diversified across Knighthead's evergreen funds, closed end credit funds, real estate lending, and insurance asset management.

About Certares

Established in 2012, Certares focuses on direct investments in proprietary transactions, leveraging deep sector experience in the travel and hospitality industries, and with a consistent emphasis on partnership with management teams to drive growth. Certares brings together a team with decades of both operational and investment experience in private equity, travel, tourism, hospitality and travel-related business and consumer services. For more information, please visit www.certares.com.

SOURCE Azul S.A.