Azul sells 6% share in TAP Air Portugal

Azul reached (03-Jul-2020) an agreement with the Government of Portugal that will enable a capital injection into TAP Air Portugal. Azul agreed to sell its current indirect participation representing 6% in TAP for approximately BRL65 million (USD12.3 million) and to withdraw conversion rights of its EUR90 million secured 2026 senior bond. In addition, all other contractual conditions remain reinforced, including its status of senior creditor, 7.5% annual interest rate and collateral including TAP's loyalty programme. The principal amount plus accrued interest of the bond corresponds to approximately BRL680 million (USD128.4 million). The transaction remains subject to Azul's required corporate approvals, including shareholders' approval at an extraordinary shareholders meeting. [more - original PR]