MercoPress. South Atlantic News Agency

LATAM with improved performance results looking to refinance debts

LATAM had a net profit of US$146 million in the second quarter, driven by growth and healthy margins, accumulating US$405 million in six months of 2024

LATAM Airlines has announced an 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. The 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.

In a communication with its investors the leading Latin American airline, which also has a weekly flight to Falkland Islands, announced it has Citigroup (Lead 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. Citigroup is coordinating the logistics”.

If 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.

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. 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.

Following a strong restructuring process as a consequence of Covid and difficult years, in early August, LATAM 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.

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.