Major Shareholder Finalizes $742.8M Secondary Offering of 12 Million ADRs
Summary
LATAM Airlines Group S.A. announced that major shareholder Sixth Street Partners finalized the sale of 12 million ADRs at $61.90 per ADR, totaling $742.8 million, in a secondary offering.
Key Events
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Finalized Secondary Offering Terms
Major shareholder Sixth Street Partners finalized the sale of 12,000,000 ADRs, an increase from the previously disclosed 9 million ADRs.
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Offering Price Set
The ADRs were priced at US$61.90 each, slightly below the current market price.
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Substantial Transaction Value
The total value of this secondary offering is approximately $742.8 million.
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Underwriting Agreement Signed
An underwriting contract was signed with JP Morgan Securities LLC for the sale, with payment expected on February 11, 2026.
Analysis
This 6-K filing finalizes the terms for the previously announced secondary offering by major shareholder Sixth Street Partners. The offering size has been increased from 9 million to 12 million ADRs, and the price has been set at US$61.90 per ADR, resulting in a total transaction value of approximately $742.8 million. This significant sale by a major institutional investor, representing a substantial portion of the company's market capitalization, could create a notable overhang on the stock due to the large volume of shares entering the market. While the company itself is not raising capital, the disposition by a key shareholder signals a reduction in their stake.
At the time of this filing, LTM was trading at $62.70 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $18.7B. The 52-week trading range was $26.36 to $70.42. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.