Azul S.A. Sponsored ADR Pfd (AZULD) faces fresh dilution math after board tweaks debt-to-equity terms
NEW YORK, Jan 10, 2026, 09:40 EST — Market closed. Azul S.A.’s U.S.-traded sponsored preferred ADRs grabbed attention again after the Brazilian airline’s board greenlit changes to the mandatory conversion terms for debentures into preferred shares, according to meeting minutes released Friday. This change hits dilution head-on — determining who receives stock, the timing, and the conversion ratio. A debenture represents debt, while a “mandatory conversion” means that debt is forcibly turned into equity, usually increasing the total shares outstanding. The updated clause tightens the schedule. It now connects the conversion to a court “confirmation order” tied to Azul’s Chapter