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LATAM achieves millionaire financing to exit the bankruptcy process

LATAM Group reported this Sunday that after carrying out an exhaustive search process for the best available conditions for its financing to exit the Chapter 11 process, it has signed financing commitment letters for this purpose with different financial entities, which represents a sample of market confidence towards LATAM and allows the group to take another step towards its exit from bankruptcy during the second half of 2022, with a more solid financial structure.

This exit financing is part of the restructuring contemplated in the Reorganization Plan and considers new debt for US$2,250 million and a new committed credit line for US$500 million and is subject to the approval of the United States Court. The financial entities with which the exit financing commitment letters were signed are: JPMorgan Chase Bank, N.A., Goldman Sachs Lending Partners LLC, Barclays Bank PLC, BNP Paribas, BNP Paribas Securities Corp., and Natixis, New York Branch.

The exit financing commitment letters also contemplate a financing of US$1,172 million that will be granted during the term of the Chapter 11 process (that is, before its exit) in the form of a DIP financing (debtor-in- possession) with less preference for payment than exit financing (“Junior DIP Financing”). The financial entities with which the letter of commitment for the Junior DIP Financing was signed are: Delta Air Lines, Inc., Lozuy S.A., Costa Verde Aeronautica S.A., QA Investments Limited, and members of the ad hoc group of LATAM creditors represented by Evercore.

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