Firm Assists Republic in $4 Billion Deal with Brazil's Embraer

Hughes Hubbard represented Republic Airline in its recent agreement to purchase 47 new E175 regional jets from Embraer, Brazil’s top plane maker. Republic also has the option to purchase an additional 47 E175 aircraft. The aircraft order has a total value of $4 billion.

In connection with the purchase order, Republic entered into a new capacity purchase agreement to fly the new aircraft for American Airlines under the American Eagle brand. Hughes Hubbard advised Republic in obtaining approval of the agreement by the bankruptcy court in American’s pending Chapter 11 reorganization.
 
In addition, Hughes Hubbard represented Republic in negotiating a $1.2 billion commitment from Agencia Especial de Financiamento Industrial-FINAME, the Brazilian export bank, to finance the purchase of the aircraft. So far, 12 of the new aircraft have been delivered to Republic and financed under this commitment.
 
Republic Airline is a subsidiary of Indianapolis-based Republic Airways. The deal garnered widespread media coverage, including in USA Today, Bloomberg, Reuters, The Associated Press and Dow Jones Newswires.
 
John Hoyns, Dan Lubell and A.J. Macdonald worked on the transactions for Republic.