LATAM Airlines joins a group of only six non-U.S. airline carriers to issue modern EETC; First aircraft-backed EETC in South America
NEW YORK, June 5, 2015 – Milbank, Tweed, Hadley & McCloy LLP represented the initial purchasers, led by Citigroup Global Markets Inc., in the $1.02 billion offering of enhanced equipment trust certificates (EETC) backed by 17 aircraft by LATAM Airlines Group S.A. (LATAM). This is the first aircraft-backed EETC in South America and one of only six non-U.S. airlines to issue a modern EETC.
The offering was split between two tranches of $845,213,000 aggregate face amount of 4.200% class A pass through trust certificates and $175,610,000 aggregate face amount of 4.500% class B pass through trust certificates.
LATAM is one of the largest airline groups in the world in terms of network connections, with a fleet of more than 300 aircraft and around 53,000 employees. LATAM’s shares are traded in Santiago, as well as on the NYSE, in the form of ADRs, and São Paulo Stock Exchange, in the form of BDRs.
The Milbank team was led by partners Elihu Robertson, Arnie Peinado, James Pascale and special counsel Kevin MacLeod. Also working on the transaction were Securities associates Kaveh Namazie and Stephanie Keats; Transportation and Space associates Niels Jensen and Min Heo; Tax partner Andrew Walker, special counsel Eschi Rahimi-Laridjani and associate Michael Goon; Executive Compensation and Employee Benefits partner Joel Krasnow and associate Robin Heszkel.
