29 May 2015
Clifford Chance advises on US$1,020,823,000 Enhanced Equipment Trust Certificates for LATAM Airlines Group S.A.
Clifford Chance has advised LATAM Airlines Group S.A. on its inaugural issuance of $1,020,823,000 Enhanced Equipment Trust Certificates (EETCs). The offering was upsized to include two tranches of EETCs — $845,213,000 of 4.200% Class A Certificates, and $175,610,000 of 4.500% Class B Certificates. The proceeds of the offering will be used to finance the acquisition of 17 new Airbus and Boeing aircraft scheduled for delivery from July 2015 to March 2016.
This marks the first EETC transaction for any airline in Latin America and includes aircraft to be registered in both Chile and Brazil. In addition, while the initial offering was completed in reliance on Rule 144A and Regulation S, this is the only EETC for a non-US airline that has included registration rights.
The New York-based team advising on this transaction was led by partner Emily DiStefano and included significant involvement from partners Gary Brooks and Philip Wagman, as well as associates Dennis Recca, Alan Kravitz, Jennie Benn, Olga Miller and Clark Spencer.