Latam Airlines Raises $1.4 Billion in Return to Debt Markets

By Vinícius Andrade

October 01, 2024 at 10:59AM EDT

A Latam Airlines aircraft taxis on the tarmac of Arturo Merino Benitez International Airport (SCL) in Santiago, Chile, on Friday, May 5, 2023. Latam Airlines Group will seek to re-list its American depositary receipts on the New York Stock Exchange this year after they were suspended during the bankruptcy. (Cristobal Olivares/Bloomberg)

(Bloomberg) -- Latam Airlines Group SA tapped global debt markets for the first time since the carrier emerged from its Chapter 11 bankruptcy.

The Santiago-based airline sold $1.4 billion in dollar notes maturing in 2030 to yield 7.875%, according to people familiar with the matter. The deal size was increased from $1.2 billion, said the people, who asked not to be identified because they’re not authorized to speak about it.

Latam, the largest carrier in South America, exited the Chapter 11 process in late 2022 with 35% less debt, placing a renewed focus on customer service. It recently returned to the New York Stock Exchange, with an offering of American depositary shares.

The company plans to use proceeds from the bond sale to repay some debts, including its term loan B facility and notes maturing in 2027.

Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co. and Banco Santander SA handled the offering.

--With assistance from Brian Smith and Maria Elena Vizcaino.