LATAM Airlines Group SA, the leading passenger and cargo airline group in South America, officially returned to trading under its ADR program on the New York Stock Exchange (NYSE).
This follows the pricing of a secondary public offering by certain shareholders of the Company to sell 19 million American Depositary Shares (ADRs), each representing 2,000 common shares of LATAM, at a price to the public of US$24 per ADR.
“The ADRs are expected to begin trading on the New York Stock Exchange (NYSE) today under the symbol LTM,” the company said in a statement.
This transaction marks the return of LATAM Airlines Group to the NYSE, following its exit in June 2020 after entering a restructuring process under Chapter 11.
In connection with the underwritten offering, the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 2,850,000 ADRs at the initial public offering price. LATAM will not receive any proceeds from the sale of ADRs by the selling shareholders.
The offering is expected to close on July 26, 2024, subject to the satisfaction of customary closing conditions. Goldman Sachs & Co. LLC, Barclays Capital Inc. and JP Morgan Securities LLC are acting as global coordinators and lead bookrunners for the offering.
Citigroup Global Markets Inc., Santander US Capital Markets LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., Natixis Securities Americas LLC and Larraín Vial SA are acting as additional bookrunners. Morgan Stanley & Co. LLC is acting as co-manager on the transaction.
Why did Latam stop trading on the stock exchange?
During the pandemic, Chilean airline Latam faced a severe setback to its business, which led to it being forced to file for Chapter 11 of the United States Bankruptcy Law.
By mid-2022, the company managed to exit the process. The operation involved the restructuring of liabilities for US$16 billion and 38 debtors.
The company obtained funds for a total amount of US$4.25 billion, guaranteed by subsidiaries, including the proceeds from bond issues for US$450 million maturing in 2027 and US$700 million maturing in 2029 in the context of a Debtor-in-Possession (DIP) financing that allowed it to emerge from Chapter 11.
Additionally, the company received loans totaling US$3.15 billion. According to data provided by the airline at the time, it achieved a reduction in debt of US$3.6 billion and in costs of US$1 billion during the process.
Source: Larepublica
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