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Latam Airlines seeks to place US$ 1.2 billion in bonds maturing in 2023 to pay debts
Tuesday, October 1, 2024 - 14:30
Foto Europa Press

Latam Airlines has turned to global debt markets for the first time since the airline emerged from Chapter 11 bankruptcy to sell $1.2 billion (1.084 billion euros) in bonds maturing in 2030.

Initial price talks are underway with a yield in the low-to-mid 8% range, according to people familiar with the deal consulted by Bloomberg .

Latam Airlines emerged from Chapter 11 proceedings at the end of 2022 with 35% less debt, focusing again on customer service. It recently returned to the New York Stock Exchange, with a stock offering.

The company plans to use the proceeds from the bond sale to repay certain debt, including its Term Loan B and notes due in 2027. Citigroup, Deutsche Bank, JPMorgan and Banco Santander are handling the offering.

The placement is scheduled for Tuesday, said IFR, a financial service of LSEG.

Days ago, the airline said it would seek to refinance US$450 million in debt by 2027 and US$1.1 billion in a loan agreed to leave behind the bankruptcy protection process.

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 due to 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 an 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.

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Europa Press
AméricaEconomía.com