LATAM Airlines Group is analysing the possibility of refinancing two sets of dollar bonds due in 2027 and 2029 as soon as they become redeemable in October 2024, chief executive Roberto Alvo has told Bloomberg News.
This prospect, alongside the option of relisting its shares on the New York Stock Exchange, is part of the LATAM Airlines (LA, Santiago de Chile) parent's efforts to take advantage of new “opportunities to grow and invest” following its exit from its Chapter 11 bankruptcy process.
“We see an interesting alternative to refinance that debt because LATAM’s risk premium is lower, there is more clarity about what we have achieved, about our track record, and yields are also a little bit lower,” Alvo elaborated.
On October 12, 2022, LATAM announced the issuance of two 13.375% senior secured notes for an aggregate principal amount of USD450 million and USD700 million, with maturity dates taking place on October 15, 2027, and October 15, 2029, respectively. They have an intangible collateral composed mainly of the LATAM Pass loyalty scheme, cargo business receivables, certain slots, gates, and routes, and LATAM’s intellectual property and brands, all worth USD8.64 billion, the company disclosed in its 2023 annual report filed in late February.
These notes were in addition to securing a five-year Term Loan B for USD1.1 billion as part of the financing secured to exit Chapter 11.
Contacted by ch-aviation, LATAM Airlines Group declined to comment further.
The company posted USD11.7 billion in total revenues in 2023 and a net profit of USD582 million, which excludes a non-operational positive net income impact related to the exit from its Chapter 11 process, the airline said.
