Brazil calls in Embraer bonds with 7% yield due 2030

Embraer announced on Thursday (21) that its indirect subsidiary, Embraer Netherlands Finance B.V. (Embraer Finance), has issued a redemption notice to holders of its 7.000% notes due in 2030. The company will redeem the entire principal amount of the outstanding notes.

The notes will be redeemed on June 2, 2026, which is the redemption date. This process follows the terms and conditions set in the indenture related to the issuance of these notes, dated July 28, 2023.

The redemption price for the notes will be the higher of two amounts. The first option is 100% of the principal amount of the notes being redeemed. The second option is a calculation based on the sum of the present values of each remaining scheduled payment of principal and interest on the notes. These payments are discounted to the redemption date, assuming the notes mature on that date at par. The discounting is done on a semiannual basis, using a 360-day year consisting of twelve 30-day months, at the U.S. Treasury rate plus 50 basis points. From this sum, accrued interest up to the redemption date is subtracted. In either case, the final price also includes accrued interest, any additional interest, and any additional amounts on the principal up to, but not including, the redemption date.

Embraer was informed that all notes are held in custody with The Depository Trust Company (DTC). Notes held at DTC must be delivered for redemption according to DTC procedures.

The redemption is being carried out exclusively under the terms of the Redemption Notice, dated May 21, 2026, which was sent to the note holders on the same day. Additional information about the terms and conditions of the redemption is fully described in the Redemption Notice. The company stated that this market announcement does not constitute a redemption notice for the notes.