AWARDS: Structured Financing
This issuer became the first South American airline to employ a complex financing tool, overcoming untested legal ground in multiple jurisdictions to significantly upsize this landmark transaction
With $10 billion of expected capital expenditures in the
next several years, Latam Airlines is always on the hunt for
new financing options. The Santiago-based company executed the
first enhanced equipment trust certificate (EETC) for a South
American airline and the largest of its kind outside the US.
The $1.02 billion transaction executed broadened Latam
Airlines’ investor pool and set industry
precedents under untested legislation in a complex, challenging
and ultimately fruitful transaction that the borrower is
EETCs are corporate debt securities that are commonly used
in aircraft finance and have typically only been used by US
issuers, as the instruments had been tied to US bankruptcy code
that only gave protection to creditors of US carriers. However,
the Cape Town treaty created in 2001, made EETCs a
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