LATAM Airlines Group has announced an interest in refinancing its USD450 million 13.375% Senior Secured Notes due in 2027 and its USD1.1 billion existing term loan agreement and will begin meeting with interested parties.
The LATAM Airlines (LA, Santiago de Chile) parent issued the debt in October 2022, when it emerged from Chapter 11 bankruptcy procedures.
The company has mandated Citigroup (as lead left bookrunner), Santander, JP Morgan, and Deutsche Bank Securities as bookrunners, Barclays and Goldman Sachs as additional bookrunners, and BNP Paribas, MUFG, and Natixis as co-managers to arrange a series of fixed-income investor meetings, during which the carrier will be represented by Ramiro Alfonsín, chief financial officer, Andrés del Valle, vice-president corporate finance, and Tori Creighton, head of investor relations.
“If these meetings are successful, potentially new senior secured bonds [worth USD1.2 billion] denominated in USD may be issued,” said the airline, adding that this will follow the rules of the US Securities Exchange Commission and will have a scheduled maturity of five years.
According to information on its website, LATAM has a second set of 13.375% senior secured notes due in 2029, worth USD700 million.
The South American group posted USD6.35 billion in total operating revenue during the first half of 2024, with a net profit of USD390 million, 15.9% and 30.8% higher, respectively, than the financial results delivered in the same period the year prior.