Chile’s Latam calls TAM’s 9½% guaranteed notes due 2020 at 104.75

By Susanna Moon

Chicago, June 10 – TAM Capital 2 Inc. said it called its 9½% senior guaranteed notes due 2020.

The redemption price will be 104.75% of par plus accrued interest to the redemption date of June 18, according to a company notice.

The Bank of New York Mellon is the paying agent.

Latam Airlines Group SA said in May that Citigroup Global Markets Inc. began a tender offer for the notes issued by TAM Capital 2 Inc. and guaranteed by TAM SA and TAM Linhas Aereas SA.

Investors had tendered $195,938,000 principal amount, or 65.31%, of the $300 million 9½% notes as of 5 p.m. ET on June 4, the early tender date.

Under the tender offer, the total purchase price was $1,053 for each $1,000 principal amount of notes tendered by the early tender deadline. The total amount included a $30 early tender premium per $1,000 principal amount.

Those who tender after the early deadline will receive $1,023 per $1,000 of notes.

The company also will pay accrued interest to the payment date.

The tender offer and consent solicitation will end at 11:59 p.m. ET on June 18.

The issuer previously said it planned to redeem any notes that remain outstanding after the early settlement date at a price of $1,047.50 per $1,000 principal amount plus accrued interest to the redemption date.

Notes purchased in the tender by Citigroup will be exchanged with Latam Airlines for notes issued in a new offering of bonds by Latam.

Latam is a Santiago, Chile-based airline holding company. TAM is an aviation company based in Sao Paulo.

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