Chile’s Latam Airlines tenders for 7 3/8% notes, 8 3/8% notes

By Susanna Moon

Chicago, Oct. 6 – Latam Airlines Group SA said that Citigroup Global Markets Inc. began a capped tender offer for the 7 3/8% senior guaranteed notes due 2017 of TAM Capital Inc. and 8 3/8% senior guaranteed notes due 2021 of TAM Capital 3 Inc.

In the offer, Citigroup will purchase up to $462.5 million principal amount of the two series of notes, according to a company announcement.

The total purchase price per $1,000 principal amount will be as follows, with the notes listed in order of priority acceptance level:

• $1,041.88 for the $500 million of 8 3/8% notes with a sub-cap of $262.5 million; and

• $1,027.50 for the $300 million of 7 3/8% notes due 2017.

The total purchase price includes an early premium $30.00 for each $1,000 principal amount of notes tendered by 8 a.m. ET on Oct. 20, the early tender date.

Holders who tender after the early deadline will receive the total amount less the early deadline.

The tender offer will end at 11:59 p.m. ET on Nov. 2.

Global Bondholder Services Corp. (212 430-3774, 866 470-3700 or contact@gbsc-usa.com) is the information and tender agent. Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) is the dealer manager.

The airline is based in Santiago.

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