LAN Chile Raises Local Bank Debt

Chile-based airline LAN says it raised $210m in bank loans in Q2, bringing its 2009 volume of new funds raised in the local bank market to $250m. The bilateral CLP-denominated facilities have tenors of 3 years and pay around 150bp over the local TAB rate. Among the lenders are CorpBanca, Itau Chile and Santander, say executives familiar with the process. LAN says it is also wrapping up a long term financing with US Exim Bank for 3 Boeing 767s to be delivered between 2009 and 2010. LAN’s total cash position at the end of the quarter stood at $700m.