LATAM Airlines Group has cancelled its cash tender and pulled a proposed unsecured bond citing a weak response from the market.
The Chilean-based carrier did not reach its “goal” for the tender prompting the decision to cancel the offer, says a spokesman for LATAM. The planned roughly $500 million bond was conditioned a successful tender.
In September, LATAM launched the redemption offer for up to $463 million in outstanding principal of TAM Capital’s $500 million 8.375% notes due in 2021 and the $300 million 7.375% notes due in 2017.
The redemption was to be financed with the proceeds of a $500 million unsecured bond due in 2024 issued by the airline’s Cayman Islands-based LATAM Finance subsidiary and cash.
Citi was offeror of the redemption offer, while Citi and JP Morgan were global coordinators for the bond and BNP Paribas, Bank of America Merrill Lynch, Deutsche Bank and Santander were joint bookrunners.