LATAM launches c.$500 million senior unsecured notes

Eleanor Steed
By Eleanor Steed October 10, 2016 17:51

LATAM launches c.$500 million senior unsecured notes

LATAM Airlines Group is hoping to raise $500 million through its latest offering of senior unsecured notes issued via its Cayman subsidiary, LATAM Finance. The new issuance will be used in part to refinance the existing 7.375% senior guaranteed notes due 2017 of TAM Capital and 8.375% senior guaranteed notes due 2021 of TAM Capital 3.

As part of the refinancing, Citi has launched a cash tender offer for up to US$462,500,000 aggregate principal amount of the outstanding 2017 notes and 2021 notes. Any remaining proceeds from the new notes sold in the offering that are not exchanged for 2017 notes and/or 2021 notes will be used for general corporate purposes. Fitch Ratings has assigned an expected rating of B+ to the new notes.

Eleanor Steed
By Eleanor Steed October 10, 2016 17:51