Sixth Street Funds to Sell 9 Million LATAM ADSs in Secondary Offering

summarizeSummary

LATAM Airlines Group S.A. filed a preliminary prospectus supplement for a secondary offering of 9 million American Depositary Shares (ADSs) by selling shareholder Sixth Street Funds, with the company receiving no proceeds from the sale.

check_boxKey Events · Financing and Capital Events · LTM

• Secondary Offering Details

  Selling shareholder Sixth Street Funds is offering 9,000,000 American Depositary Shares (ADSs), representing 18 billion common shares.

• No Proceeds to Company

  LATAM Airlines Group S.A. will not receive any proceeds from this secondary sale.

• Significant Stake Reduction

  The offering represents approximately 18.02% of Sixth Street Funds' current holdings, which constitute 17.40% of LATAM's total common shares.

• Lock-up Agreements

  The selling shareholder is subject to a 45-day lock-up period. Additionally, approximately 25% of common shares held by other major shareholders (including Delta Air Lines, Inc., Qatar Airways Investments (UK) Ltd., and Costa Verde Aeronautica S.A.) are subject to a sale restriction until November 2026.

auto_awesomeAnalysis · LTM · Energy & Transportation

This preliminary prospectus supplement formalizes the secondary offering of 9 million American Depositary Shares (ADSs) by Sixth Street Funds, a major shareholder, as previously announced on the same day. The transaction, valued at approximately $583.6 million, represents a significant disposition by a key institutional investor, accounting for over 3% of the company's market capitalization. While the company will not receive any proceeds, the offering increases the public float and could exert downward pressure on the stock price due to the potential for increased supply. The sale reduces Sixth Street Funds' stake by approximately 18% of their holdings. Investors should note the lock-up agreements, which provide some near-term stability for other major shareholders but highlight ongoing investor activity.