SANTIAGO, Chile, May 21, 2015 /PRNewswire/ -- LATAM Airlines Group
S.A., its affiliates, ("LATAM Airlines Group" or the "Company")
(NYSE: LFL / IPSA: LAN / Bovespa: LATM33), TAM Capital 2 Inc. (the
"Issuer") and Citigroup Global Markets Inc. (the "Offeror" or the
"Dealer Manager") today announced the commencement of an offer by
the Offeror to purchase for cash (the "Tender Offer") any and all
of the outstanding 9.50% Senior Guaranteed Notes due 2020 (the
"Notes") of the Issuer. The Tender Offer is being made by the
Offeror on behalf of LATAM and the Issuer pursuant to the offer to
purchase and consent solicitation statement dated May 21, 2015 (the "Tender Offer and Consent
Solicitation Statement") and the related letter of transmittal and
consent (the "Letter of Transmittal" and, together with the Tender
Offer and Consent Solicitation Statement, the "Offer Documents").
The principal purpose of the Tender Offer is to acquire all the
outstanding Notes and the principal purpose of the Consent
Solicitation (as defined below) is to eliminate substantially all
of the restrictive covenants and certain events of default
contained in the Indenture (as defined below).
In connection with the Tender Offer, the Issuer is also
soliciting (the "Consent Solicitation"), with respect to the Notes,
consents (the "Consents") to (i) amendments to the indenture, dated
October 29, 2009 (as amended and
supplemented to the date hereof, the "Indenture"), among the
Issuer, TAM S.A. ("TAM S.A.") and TAM Linhas Aéreas S.A. ("TAM
Linhas" and, together with TAM S.A., the "Guarantors"), as
guarantors, The Bank of New York Mellon, as trustee, registrar,
transfer agent and principal paying agent (the "Trustee"), and The
Bank of New York Mellon (Luxembourg) S.A., as Luxembourg transfer agent (the "Luxembourg
Transfer Agent"), under which the Notes were issued, which would
eliminate most of the covenants, eliminate certain events of
default applicable to the Notes, eliminate or amend certain other
provisions contained in the Indenture and the Notes and shorten the
minimum period in which the Issuer is required to give notice to
holders of a redemption from 30 days to five Business Days prior to
a redemption date (the "Majority Consent Amendments") and (ii) an
amendment to the Indenture, which would eliminate the "Limitations
on the Company" covenant (the "Two-Thirds Consent Amendments", and
together with the Majority Consent Amendments, the "Proposed
Amendments"). If the Proposed Amendments become operative, any
Notes remaining outstanding after that date will no longer be
entitled to the benefit of substantially all of the restrictive
covenants and certain of the events of default contained in the
Indenture.
The Issuer currently intends to redeem the Notes that remain
outstanding following the Early Settlement Date at a cash
redemption price per $1,000 principal
amount of the Notes equal to $1,047.50, plus accrued and unpaid interest to
the redemption date. However, the Issuer is under no obligation to
do so, and may elect not to do so on that date, or at all.
The table below summarizes certain payment terms for the
Notes:
Description
of Notes
|
CUSIP/
ISIN Nos.
|
Outstanding
Principal
Amount
|
Tender Offer
Consideration(1)(2)
|
Early Tender
Payment(1)
|
Total
Consideration(1)(2)
|
9.50% Senior
Guaranteed Notes
due 2020
|
G86665AA7, 87217AAA1
/ USG86665AA70, US87217AAA16
|
U.S.$300,000,000
|
U.S.$1,023.00
|
U.S.$30.00
|
U.S.$1,053.00
|
(1) Per U.S.$1,000 principal
amount of Notes.
(2) Excludes accrued interest, which will be paid in addition to
the Tender Offer Consideration or the Total Consideration, as
applicable.
The Tender Offer and Consent Solicitation will expire at
11:59 P.M., New York City time, on June 18, 2015, unless extended or earlier
terminated (such date and time, including as extended or earlier
terminated, the "Expiration Date"). Holders of Notes who validly
tender (and do not validly withdraw) their Notes at or prior to
5:00 P.M., New York City time, on June 4, 2015, unless extended or earlier
terminated (such date and time, including as extended or earlier
terminated, the "Early Tender Date"), will be eligible to receive
the Total Consideration (as defined below), which includes the
Early Tender Payment (as defined below), plus accrued interest to
the date of payment. Holders of Notes who validly tender Notes
after the Early Tender Date but at or prior to the Expiration Date
in the manner described herein will not be eligible to receive the
Early Tender Payment and will therefore only be eligible to receive
the Tender Offer Consideration (as defined below), plus accrued
interest to the date of payment. Notes that have been validly
tendered pursuant to the Tender Offer may be validly withdrawn
prior to the Early Tender Date but not thereafter except as may be
required by applicable law.
The "Total Consideration" for each U.S.$1,000 principal amount of Notes validly tendered
(and not validly withdrawn) at or prior to the Early Tender Date
and accepted for purchase pursuant to the Tender Offer will be
U.S.$1,053.00, which includes an
early tender payment equal to U.S.$30.00 (the "Early Tender Payment"), and Holders
of such Notes will be eligible to receive the Total Consideration
within three business days following the Early Tender Date (the
"Early Settlement Date"). Holders of Notes who validly tender Notes
after the Early Tender Date but at or prior to the Expiration Date
and whose Notes are accepted for purchase will not be entitled to
receive the Early Tender Payment and will therefore be entitled to
receive, for each U.S.$1,000
principal amount of Notes accepted for purchase, U.S.$1,023.00 (the "Tender Offer Consideration").
The Offeror intends to accept for purchase on the settlement
date that is expected to be within three business days following
the Expiration Date or as promptly as practicable thereafter (the
"Final Settlement Date"), all Notes validly tendered (and not
validly withdrawn) at or prior to the Expiration Date.
Adoption of the Majority Consent Amendments requires the written
consent of the Holders of at least a majority of the principal
amount of the outstanding Notes (the "Majority Consents") and
adoption of the Two-Thirds Consent Amendments requires the consent
of not less than 66 2/3% of the aggregate principal amount of the
Notes (the "Two-Thirds Consent" and, together with the Majority
Consents, the "Requisite Consents"). The Offeror will only accept
Notes for purchase if Consents representing at least a majority of
the principal amount of the outstanding Notes to authorize the
Proposed Amendments are validly delivered and not validly revoked.
Assuming that Consents representing at least a majority of the
principal amount of the outstanding Notes (excluding any Notes
owned by the Issuer or its affiliates) are validly delivered and
not validly revoked, the Issuer, the Guarantors and the Trustee
will execute a supplemental indenture with respect to the Indenture
(the "Supplemental Indenture") providing for the Proposed
Amendments. The Supplemental Indenture will become effective
upon its execution and delivery by the Issuer, the Guarantors and
the Trustee, but will provide that the Proposed Amendments will not
become operative until the Offeror accepts for purchase in the
Tender Offer at least a majority (in the case of the Majority
Consent Amendments), or not less than 66 2/3% (in the case of the
Two-Thirds Consent Amendments), in principal amount of the
outstanding Notes (excluding any Notes owned by the Issuer or its
affiliates), and the Exchange (as defined below) is
consummated.
Holders may not tender their Notes without delivering their
Consents to the Proposed Amendments and to the execution and
delivery of the Supplemental Indenture pursuant to the Consent
Solicitation and may not deliver Consents to the Proposed
Amendments and the execution and delivery of the Supplemental
Indenture without tendering their Notes pursuant to the Tender
Offer. Holders that validly tender their Notes pursuant to
the Tender Offer will be considered to have validly delivered their
Consents.
The Issuer and LATAM have consented to the Offeror making the
Tender Offer and the Consent Solicitation. It is intended that the
Notes purchased by the Offeror in the Tender Offer will be
exchanged by the Offeror with LATAM for certain new notes (the
"Exchange") issued in a new offering by LATAM (the "New
Offering").
The obligation of the Offeror to accept for purchase, and to pay
for, Notes validly tendered pursuant to the Tender Offer is subject
to, and conditioned upon, the satisfaction or waiver of certain
conditions as set forth in the Offer Documents, in the sole
discretion of the Offeror, including consummation of the New
Offering in terms satisfactory to LATAM and receipt by the Offeror
of valid tender (that are not withdrawn) of a majority of the
outstanding Notes.
The Information Agent and Tender Agent for the Tender Offer and
Consent Solicitation is Global Bondholder Services Corporation. To
contact the Information Agent and Tender Agent, banks and brokers
may call +1-212-430-3774, and others may call U.S. toll-free:
866-470-3900. The Information Agent and Tender Agent's email is
contact@gbsc-usa.com.
Any questions or requests for assistance may be directed to the
Dealer Manager at its respective telephone numbers set forth below
or, if by any Holder, to such Holder's broker, dealer, commercial
bank, trust company or other nominee for assistance concerning the
Tender Offer and Consent Solicitation.
The Sole Dealer Manager for the Tender Offer is:
Citigroup Global
Markets Inc
390 Greenwich
Street
1st Floor
New York, New York
10013
Attention: Liability
Group Management
U.S. Toll-Free: (800)
558-3745
Collect: (212)
723-6106
|
This notice does not constitute or form part of any offer or
invitation to purchase, or any solicitation of any offer to sell,
the Notes or any other securities in the
United States or any other country, nor shall it or any part
of it, or the fact of its release, form the basis of, or be relied
on or in connection with, any contract therefor. This notice is
also not a solicitation of any Consent to the Proposed Amendments.
The Tender Offer and Consent Solicitation are made only by and
pursuant to the terms of the Tender Offer and Consent Solicitation
Statement and the related Letter of Transmittal and the information
in this notice is qualified by reference to the Tender Offer and
Consent Solicitation Statement and the related Letter of
Transmittal. None of the Offeror, the Issuer, LATAM or the
Information Agent and Tender Agent makes any recommendations as to
whether holders should tender their Notes pursuant to the Tender
Offer and deliver their Consents pursuant to the Consent
Solicitation.
This notice to the market does not represent an offer to sell
securities or a solicitation to buy securities in the United States or in any other country. The
New Offering was not and will not be registered under the U.S.
Securities Act of 1933 ("Securities Act"), as amended.
Consequently, the notes issued in the New Offering are prohibited
from being offered or sold in the United
States or to U.S. citizens without the applicable
registration or exemption from registration required under the
Securities Act.
This notice to the market is released for disclosure purposes
only, in accordance with applicable legislation. It not does not
constitute marketing material, and should not be interpreted as
advertising an offer to sell or soliciting any offer to buy
securities issued by the Issuer, the Guarantors and LATAM. This
notice to the market is not for distribution in or into or to any
person located or resident in the United
States, its territories and possessions, any state of
the United States or the
District of Columbia or in any
jurisdiction where it is unlawful to release, publish or distribute
this announcement.
Forward-Looking Statements
This notice includes and references "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may relate to, among other things,
LATAM's business strategy, goals and expectations concerning its
market position, future operations, margins and profitability.
Although the Issuer and LATAM believe the assumptions upon which
these forward-looking statements are based are reasonable, any of
these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be
incorrect.
The matters discussed in these forward-looking statements are
subject to risks, uncertainties and other factors that could cause
actual results and trends to differ materially from those made,
projected, or implied in or by the forward-looking statements
depending on a variety of uncertainties or other factors.
The Issuer and LATAM undertake no obligation to update any of
its forward-looking statements.
About LATAM Airlines Group S.A.
LATAM Airlines Group S.A. is the new name given to LAN Airlines
S.A. as a result of its association with TAM S.A. LATAM Airlines
Group S.A. now includes LAN Airlines and its affiliates in
Peru, Argentina, Colombia and Ecuador, and LAN Cargo and its affiliates, as
well as TAM S.A. and its subsidiaries TAM Linhas Aereas S.A.,
including its business units TAM Transportes Aereos del Mercosur
S.A., (TAM Airlines (Paraguay))
and Multiplus S.A. This association creates one of the largest
airline groups in the world in terms of network connections,
providing passenger transport services to about 135 destinations in
24 countries and cargo services to about 144 destinations in 26
countries, with a fleet of 314 aircraft. In total, LATAM Airlines
Group S.A. has approximately 53,000 employees and its shares are
traded in Santiago, as well as on
the New York Stock Exchange, in the form of ADRs, and Sao Paulo
Stock Exchange, in the form of BDRs.
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SOURCE LATAM Airlines Group S.A.