Repurchase of the Series A Perpetual Convertible Preferred Shares and Repayment of Afya Participações S.A. Debentures

Afya Limited (Nasdaq: AFYA; B3: A2FY34), Brazil’s premier medical education group, announced significant financial moves today, including a Share Repurchase Agreement with SBLA Holdco LLC, an affiliate of Softbank. The agreement involves repurchasing 150,000 Series A Perpetual Convertible Preferred Shares at a total cost of R$831.6 million, scheduled to close on November 3, 2025. These shares were initially issued on April 26, 2021, raising US$150 million, and Afya plans to cancel them post-repurchase.

Additionally, Afya has successfully repaid R$500 million in debentures previously issued by its subsidiary, Afya Participações S.A. This repayment was completed on October 22, 2025. The debentures were part of an initial issuance of 500,000 units on December 16, 2022, with a maturity date set for January 15, 2028. Originally, the principal was to be amortized in two equal installments over the next two years.

To fund these substantial transactions, Afya will utilize proceeds from commercial notes issued by Afya Brazil on October 15, 2025. This strategic financial maneuvering showcases Afya’s strong commitment to optimizing its capital structure while ensuring its long-term growth trajectory.

As a leader in the Brazilian medical education sector, Afya provides a comprehensive ecosystem designed to support students and physicians throughout their careers, from medical school to continuing education and practice solutions. This repurchase and debt repayment reaffirm Afya's financial health and robust operational framework as it continues to empower healthcare professionals in Brazil.

For further details, Afya’s Investor Relations can be contacted at ir@afya.com.br.

Afya Limited's recent announcements regarding the repurchase of its Series A Perpetual Convertible Preferred Shares and the repayment of R$500 million in debentures highlight significant financial maneuvering that investors should closely examine.

The decision to repurchase the 150,000 Series A Preferred Shares from SBLA Holdco LLC for approximately R$831.6 million signals Afya's commitment to streamline its capital structure by eliminating dilutive securities, which could enhance shareholder value. By cancelling these shares post-repurchase, Afya is likely aiming to bolster earnings per share, an appealing proposition for potential and current investors. This bold move comes after the initial issuance of these shares back in April 2021, showcasing a strategic reversal aimed at optimizing its cost of capital.

Furthermore, Afya's prompt repayment of the R$500 million in debentures demonstrates strong balance sheet management. By utilizing proceeds from its commercial notes, Afya exhibits a proactive approach to managing its liabilities and reducing interest expenses, often a critical factor in maintaining financial health, especially in times of rising interest rates. This repayment strategy can also enhance the company's credit profile, potentially leading to more favorable terms in future financing endeavors.

From a market perspective, these developments reflect positively on Afya's operational strategy and fiscal discipline. Investors may view this as a strong indication of the company’s robust cash flow generation capabilities and overall financial stability. Moreover, given Afya's leading position in Brazil's medical education sector, and its strategic investments in healthcare solutions, these financial maneuvers could position the company favorably for growth and expansion.

In conclusion, potential investors should keep an eye on Afya's performance metrics following these transactions as indicators of sustainable growth and operational efficiency, while current shareholders may benefit from the expected improvement in shareholder returns.