Santiago, October 1, 2024 - Through a material fact filed to the “Comisión para el Mercado de Valores” (CMF), LATAM Airlines Group S.A. informed the issuance of secured notes in the international market for US$1.4 billion, at an annual interest rate of 7.875%, maturing in 2030. The transaction generated relevant interest from investors with an order book more than 5 times oversubscribed and coming from more than 250 investors globally.

With this refinancing, LATAM will reduce its cost of debt with a significantly lower interest rate than its existing debt, generating annual savings of approximately US$83 million in lower interest payments.

With the funds obtained from this issuance and the use of US$200 million in cash, LATAM expects to prepay the US$450 million note due in 2027 with an interest rate of 13.375%, as well as the Term Loan B of US$1.081 billion due in 2027, with an interest rate of SOFR + 950 bps, equivalent to approximately 15%. Both the note and the Term Loan B were part of the Chapter 11 Process Exit Financing.

In addition, with the use of US$200 million in cash, the group is further reducing its gross debt levels.

Finally, in accounting terms, this refinancing will have a one-time impact on LATAM’s income statement of approximately US$134 million, of which US$45 million will be reflected in cash movements during the fourth quarter of this year.