Skip to content

Industry News

Oaktree Capital Management to Provide USD750m in Debt Financing for LATAM Airlines

23 November 2021

Oaktree Capital Management agreed to invest up to USD750m in debt financing for LATAM Airlines. This financing will be in addition to the A and C financing tranches agreed in 2020.

(Global Legal Chronicles) DLA Piper Chile, Cescon, Barrieu, Flesch & Barreto and White & Case advised Oaktree Capital Management, while Claro & Cía., Demarest , Rodrigo, Elías & Medrano, Pérez Bustamante & Ponce and Cleary Gottlieb Steen & Hamilton advised Latam on the transaction.

Oaktree Capital Management granted a financing to LATAM Airlines Group S.A., and other group entities, up to the amount of US$750,000,000 corresponding to Tranche B of the DIP Financing Agreement entered into by LATAM, in the context of the Chapter 11 reorganization process before the Bankruptcy Court of the Southern District of New York, which included the extension of the guarantees granted for Tranches A and C, consisting of certain pledges on LATAM shares and accounts under Chilean law and general liens under New York law.

Founded in 1955, Oaktree Capital Management is a leading global alternative investment management firm with expertise in credit strategies.

Founded out of the Brazilian LAN and the Chilean TAM merger in 2012, the LATAM Airlines Group constitutes the leading aviation company in Latin America.

The DLA Pipe Chile team was led by partners Mauricio Halpern (Picture), Matías Zegers, supported by Hugo Molina, associate.

In Brazil, Cescon, Barrieu, Flesch & Barreto advised LATAM with Daniel Laudisio and Amanda Sobreira Arêas.

White & Case advised Oaktree Capital Management in US.

Cleary Gottlieb Steen & Hamilton avised LATAM with a team including Richard Cooper, Lisa Schweitzer, Luke Barefoot, Penelope L. Christophorou, Kara Hailey, Thomas S. Kessler, Kimberly Black, John Veraja, Linda Zang and Christopher Reszczynski.

In Chile, Claro & Cia. advised LATAM with José María Eyzaguirre Baeza, José María Eyzaguirre Fernández, Nicolás Luco and Felipe Larraín.

In Brazil, Demarest advised LATAM with Celso Xavier, Thiago Giantomassi Medeiros, Guilherme Fontes Bechara, Christiano Chagas Monteiro de Melo, Marc Stalder, Marcelo Peloso and Fausto Teixeira

In Perù, Rodrigo, Elías & Medrano advised LATAM with Guillermo Puelles, Bruno Baigorria and Renzo Rossi.

In Equador, Pérez Bustamante & Ponce advised LATAM with Diego Pérez Ordóñez, Andrés Brown Pérez and Ricardo Pérez.