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Brazil’s Embraer is gearing up to sell its first international bonds since July 2023 to fund a new tender offer, according to a source familiar with the deal. The aircraft manufacturer began calling investors on Wednesday to pitch 10-year notes with Citi, Goldman Sachs, JPMorgan, Morgan Stanley and PNC Bank leading the offering as global coordinators and joint bookrunners, the source said. Bank of America, Bradesco BBI, Crédit Agricole and Santander are also joint bookrunners on the deal, with is expected to price in the US bond market this week, the source added. Embraer announced the buyback on Wednesday in which it is offering to repurchase any or all of the $522 million outstanding on its 5.4% 2027 global bonds and up to $150 million of the $479 million on its 6.95% 2028 global notes. It is offering to pay a fixed spread of 45 basis points for every $1,000 in principal in 2027 notes tendered by February 11 and 80 basis points plus a $50 premium for every 2028 note tendered by March 6. Citi, Goldman Sachs, JPMorgan, Morgan Stanley and PNC Bank are also dealer managers on the buyback, it added.
