Latam Airlines term loan frees to trade following changes; Vericast shops amendment

By Sara Rosenberg

New York, Oct. 11 – Latam Airlines increased the size of its term loan B as its bond offering was scaled back, widened spread and original issue discount, revised CSA and call protection, and added ticking fees before breaking for trading on Tuesday.

Latam lifted its five-year term loan B (B2/B+) to $1.1 billion from a revised amount of $1 billion and an initial size of $750 million, raised pricing to SOFR plus 950 basis points from SOFR plus 775 bps, revised CSA to 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate from 10 bps, and adjusted the original issue discount to 91.5 from talk in the range of 92 to 93, a market source remarked.

Furthermore, the call protection was changed to non-callable for two years, then at par, from non-callable for one year, then at 101 in year two and par thereafter, and ticking fees were added from pricing until the outside date of half the margin from days 46 to 90 and the full margin thereafter.

In more happenings, Vericast Corp. launched a transaction to revise its capital structure through the combination of two term loans and the refinancing of some term loan debt with second-lien secured notes.

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