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Latam Airlines sees early tenders for $238.16 million of 7¼% notes
By Marisa Wong
Los Angeles, July 25 – Chile’s Latam Airlines Group SA said holders had tendered $238,162,000 of its 7¼% senior notes due June 9, 2020 as of 5 p.m. ET on July 24, the early tender deadline of its previously announced cash tender offer.
Latam launched on July 11 its offer to purchase for cash up to $300 million of the $500 million of outstanding notes.
Because the amount tendered as of the early tender deadline is less than the tender cap, Latam intends to accept for purchase all of the early tendered notes without proration, according to a Thursday press release.
Holders who tendered their notes by the early deadline will receive the total consideration of $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.
The offer expires at 11:59 p.m. ET on Aug. 7.
Tenders may no longer be withdrawn.
Concurrently with the launch of the tender offer, Latam is announcing a reopening of the 7% senior notes due 2026 by wholly owned subsidiary Latam Finance Ltd.
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 will accept for purchase tendered notes on a prorated basis.
The company said it may increase or decrease the tender cap but is not obligated to do so.
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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