Chile’s Latam Airlines scraps tender for 7 3/8%, 8 3/8% notes via Citi

By Susanna Moon

Chicago, Oct. 20 – Latam Airlines Group SA announced the termination of the capped tender offer for the 7 3/8% senior guaranteed notes due 2017 of TAM Capital Inc. and 8 3/8% senior guaranteed notes due 2021 of TAM Capital 3 Inc.

The tender offer was subject to conditions, some of which were not satisfied, according to a company notice.

As announced Oct. 6, Citigroup Global Markets Inc. was tendering for up to $462.5 million principal amount of the two series of notes.

The total purchase price per $1,000 principal amount would have been as follows, with the notes listed in order of priority acceptance level:

• $1,041.88 for the $500 million of 8 3/8% notes with a sub-cap of $262.5 million; and

• $1,027.50 for the $300 million of 7 3/8% notes due 2017.

The total purchase price included an early premium of $30.00 for each $1,000 principal amount of notes tendered by 8 a.m. ET on Oct. 20, the early tender date.

Holders who tendered after the early deadline would have received the total amount less the early deadline.

The tender offer had been set to end at 11:59 p.m. ET on Nov. 2.

Global Bondholder Services Corp. (212 430-3774, 866 470-3700 or contact@gbsc-usa.com) is the information and tender agent. Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) is the dealer manager.

The airline is based in Santiago.

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