Chilean Wraps up Roadshow

Latam Airlines has ended its investor meetings, and is preparing to price a new $450m asset-backed bond as soon as Monday, say people familiar with the issuer’s plans. The 2020 bond is backed by airline ticket and cargo payment flows, according to Fitch, which assigns a BB+ rating. The Chilean visited Santiago, Lima, Los Angeles, London, Boston, Hartford and New York. Citi and Bank of America Merrill Lynch are managing the deal, to be issued through the Guanay Finance Limited special purpose vehicle. The bonds are backed by USD and CAD-denominated receivables from ticket and cargo sales generated by credit, debit or charge cards in the United States and Canada. The bond will have a 2-year interest-only period followed by five years of amortizations. In June, Latam priced a 2024 bond guaranteed by the UK’s Export Credit Guarantee Department (ECGD), raising $133m. The 6.05-year average life note priced to yield 2.581%, equal to MS+100bp, through BNP Paribas and Santander.