If these meetings with investors are successful, new senior secured bonds denominated in US dollars could potentially be issued, the company said.
Latam Airlines announced on Thursday its interest in refinancing its US$450 million 13.375% Senior Secured Bonds maturing in 2027 and its current US$1.1 billion term loan agreement, and will meet with interested parties in this regard.
Such debt was issued in October 2022 in connection with its exit from the reorganization proceedings under Chapter 11 of Title 11 of the United States Code.
The company stated this in a communication with its investors published during the day.
In it, LATAM reports that it has ordered Citigroup (Lead Left Bookrunner), Santander, JP Morgan and Deutsche Bank Securities as Bookrunners, Barclays and Goldman Sachs as Additional Bookrunners, and BNP Paribas, MUFG and Natixis as Co-Managers, "to organize a series of meetings with fixed-income investors starting on Thursday, September 26. Citigroup is coordinating the logistics," it highlights in its statement.
If these meetings are successful, new senior secured notes denominated in US dollars pursuant to Rule 144 A and Reg. S of the Securities Exchange Commission, with a scheduled maturity of five years (long 5NC2), for an indicative amount of US$1.2 billion and expected credit ratings* of Ba2 by Moody's and BB+ by S&P, subject to market conditions, could potentially be issued.
Later in its report, the company indicates that LATAM will be represented by: Ramiro Alfonsín, as Financial Director, Andrés del Valle, as its VP Corporate Finance and Tori Creighton, who is Investor Relations Manager.
However, Latam indicated that a securities rating is not a recommendation to buy, sell or hold securities and may be subject to review or withdrawal at any time.
"Each security rating must be evaluated independently of each of the other securities' ratings," the firm said.
It also clarified that this notice does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States or in any jurisdiction where such offer or solicitation is unlawful.
"Securities may not be offered or sold in the United States without registration or an exemption from registration," he stressed.
GOOD QUARTER?
In early August, the company announced its financial results for the second quarter of 2024, maintaining the positive trend in its operational and financial performance. LATAM had a net profit of US$146 million during the second quarter, which was driven by growth and healthy margins, accumulating US$405 million in net profits when considering the first six months of the year.
Total operating revenues reached US$3.03 billion in the period, mainly explained by the increase in passenger revenues following the continued growth of the international segment and the good performance of domestic subsidiaries, even in the low season.
In turn, LATAM reported a solid adjusted EBITDAR of US$619 million for the quarter, 10.7% higher than the same period in 2023, due to the increase in operated capacity and the containment of unit costs excluding the fuel variable.
During the second quarter of 2024, the LATAM Group transported 19.1 million passengers, representing an increase of 11.7% compared to the same period last year.
Today, Latam Airlines' share price on the New York Stock Exchange was US$26.48.
