SAO JOSE DOS CAMPOS, Brazil, Oct. 20 /PRNewswire-FirstCall/ -- Embraer (Bovespa: EMBR3) announced today that its subsidiary Embraer Overseas Limited has priced an offering of US$400 million aggregate principal amount of 6.375% Guaranteed Notes due 2017 in an offering exempt from registration under the United States Securities Act of 1933, as amended ("Securities Act"). The notes will be unconditionally guaranteed by Embraer.
The aggregate principal amount of the notes is US$400 million, the net proceeds of which will be used primarily to repay existing indebtedness of Embraer and for general corporate purposes.
In connection with the notes, Embraer and Embraer Overseas will enter into a registration rights agreement providing that they will use their reasonable best efforts to file with the Securities and Exchange Commission and cause to become effective a registration statement relating to an offer to exchange the notes for an issue of registered notes with terms identical to the notes, except that the exchange notes will not be subject to restrictions on transfer or to any increase in annual interest rate as described in the agreement.
The notes have not and, except as contemplated by the registration rights agreement, will not be registered under the Securities Act and may not be offered or sold (a) in the United States absent registration or an applicable exemption from registration requirements, or (b) in any other jurisdiction in which such offer or sale is prohibited. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes.
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Embraer (Empresa Brasileira de Aeronautica S.A. - (Bovespa: EMBR3) is the world's leading manufacturer of commercial jets up to 110 seats, with 37 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the Commercial Aviation, Executive Aviation, and Defense and Government segments. With headquarters in Sao Jose dos Campos, State of Sao Paulo, the Company has offices and customer service bases in the United States, France, Portugal, China and Singapore. Embraer is among Brazil's leading exporting companies.
This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect the Company's businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where the Company does business; expectations on industry trends; the Company's investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words "believe," "may," "is able," "will be able," "intend," "continue," "anticipate," "expect" and other similar terms are supposed to identify potentialities. The Company does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Company expectations.
