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Latam Airlines launches tender offer for $300 million of 7¼% notes
By Sarah Lizee
Olympia, Wash., July 11 – Latam Airlines Group SA launched an offer to purchase for cash up to $300 million of its $500 million of outstanding 7¼% senior notes due June 9, 2020, according to a press release.
The company may increase or decrease the tender cap, but there is no assurance that it will do so.
The early deadline is 5 p.m. ET on July 24. The offer expires at 11:59 p.m. ET on Aug. 7.
Holders who tender their notes by the early deadline will receive the total consideration, which is $1,038 per $1,000 of notes, which includes an early tender payment of $30 per $1,000 note.
Holders who tender their notes after the early deadline will not receive the early tender payment.
Holders will also receive accrued interest.
Concurrently with the launch of the tender offer, Latam is announcing a reopening of the 7% senior notes due 2026 of Latam Finance Ltd., a wholly owned subsidiary of Latam, to be issued by Latam Finance.
Latam expects to use the net proceeds from the reopening and available cash, if needed, to finance the tender offer. The remainder of proceeds, if any, will be used for general corporate purposes.
The tender offer is conditioned upon, among other things, the successful completion of the reopening.
If the tender offer is oversubscribed, Latam said it will accept for purchase tendered notes on a prorated basis.
Any notes tendered may be validly withdrawn at or before the early deadline.
Global Bondholder Services Corp. (212 430-3774, 866 470-4200 or 212 430-3775/3779) is the information agent.
Goldman Sachs & Co. LLC (800 828-3182 or 212 902-6351) and J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279) are acting as dealer managers.
The airline is based in Santiago.
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