Latam Airlines draws $200 million from $750 million tranche B DIP loan

By Sarah Lizee

Olympia, Wash., Nov. 10 – Latam Airlines Group, SA’s $750 million tranche B debtor-in-possession facility was expected to be subscribed Wednesday, and the company expected to make an immediate $200 million draw on the facility as well, according to a 6-K filed with the Securities and Exchange Commission.

As previously reported, the company received approval of the tranche B facility on Oct. 18 from the U.S. Bankruptcy Court for the Southern District of New York.

The tranche B facility is in addition to the company’s existing DIP credit facilities, which now total $3.2 billion.

The tranche B lenders are Oaktree Capital Management LP and Apollo Management Holdings, LP and their affiliates.

Bank of Utah is the administrative agent and collateral agent, Banco Santander Chile is the Chile local collateral agent, TMF Brasil Administracao e Gestao de Ativos Ltda. is the Brazil local collateral agent, TMF Columbia Ltda. is the Columbia local collateral agent, TMF Ecuador, SA is the Ecuador local collateral agent, and Fiduperu SA Sociedad Fiduciaria is the Peru local collateral agent.

Interest on the tranche B facility is Libor plus 700 basis points for loans paid in cash and Libor plus 750 bps for loans paid in kind.

The tranche B facility is set to mature in 18 months.

Latam Airlines is a Santiago, Chile-based airline. The company filed bankruptcy on May 25, 2020 under Chapter 11 case number 20-11254.

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