In a new round (tranche B) of financing in its Chapter 11 saga, LATAM obtained a loan of up to US$750 million. As reported by the company in a press release, this capital injection was obtained at more favorable rates and conditions than those obtained for Tranches A and C. This will allow the airline to improve its cost of access to money.
After a round of bids from investors, LATAM’s Board of Directors unanimously approved on September 24 the proposal presented by a group formed by Oaktree Capital Management, Apollo Management Holdings, and others. In this regard, Ramiro Alfonsín, LATAM Airlines Group’s Finance Vice-President, said “we received several offers from investors that will allow us to access better financing conditions”.
See also: LATAM Airlines receives financing offers for USD 5 billion and requests an extension of its reorganization plan date
As a result, the financing received by the company is as follows
- US$1.3 billion Tranche A
- Tranche B, up to US$750 million
- US$1,150 million of Tranche C
Tranche B is still open, so LATAM could incorporate new capital in the future if the need arises.
LATAM’s operations
The airline currently operates at approximately 50% of its pre-pandemic capacity and plans to return to pre-pandemic numbers only in 2024.
According to SimpleFlying, in September, LATAM operated approximately 970 daily flights, between domestic and international routes. LATAM Cargo, the company’s star performer since the pandemic began, flew 990 flights using its fleet of cargo aircraft.
Colombia is the best-performing country, with 80% of pre-pandemic capacity, thanks to a strong rebound in the domestic market. It is followed by Brazil (55% of its pre-pandemic capacity), LATAM Peru at 51%, LATAM Chile (50%), and LATAM Ecuador, with 31%.
