Banks Hike Pricing on Junk Bond Needed for Latam Bankruptcy Exit
Sept. 29, 2022, 3:54 PM
- Senior secured bond is now being offered at 14% to 15% yield
- Orders are slow on the $2.25 billion of bonds and loans
Banks leading the bankruptcy exit financing for Latam Airlines Group SA are sweetening the price on $1.5 billion of high-yield bonds amid tepid investor demand.
JPMorgan Chase & Co. is proposing an all-in yield in the range of 14% to 15% on the debt from an initial price talk of around 13%, according to people familiar with the matter. The original issue discount has been lowered to 93 cents on the dollar, according to the people, who asked not to be named discussing private information.
https://news.bloomberglaw.com/bankru...ankruptcy-exit
Related Issuers
LATAM Airlines Group S.A (LATAM) Related Research
Credit Opinion: LATAM Airlines Group S.A (LATAM): New issuer - Update following post-bankruptcy exit financing issuance
Rating Action:
Moody's assigns B2 ratings to LATAM Airlines and its $2.25 billion secured notes and term loan in connection with its post-bankruptcy exit financing; outlook is stable
22 Sep 2022New York, September 22, 2022 -- Moody's Investors Service ("Moody's") has today assigned a B2 corporate family rating (CFR) to LATAM Airlines Group S.A (LATAM) in connection with its post-bankruptcy exit financing. At the same time, Moody's assigned a B2 rating to the proposed $2.25 billion senior secured notes and term loan to be co-issued by LATAM and Professional Airline Services Inc., a Florida corporation and a wholly owned subsidiary of LATAM, due in 5 and 7 years. The outlook for the ratings is stable.
The rating assignment follows the confirmation order of LATAM debtor's joint plan of reorganization under the Chapter 11 of the US bankruptcy code issued on 18 June 2022 by the United States Bankruptcy Court of the Southern District of New York, which will allow the company to emerge from bankruptcy in the second half of 2022.
The rating of the proposed notes and term loan assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable.
Ratings Assigned:
..Issuer: LATAM Airlines Group S.A
.... Corporate Family Rating: B2