OREANDA-NEWS. May 22, 2015. LATAM Airlines Group S.A. and its affiliates, (“LATAM Airlines Group” or “the Company”) (NYSE: LFL / IPSA: LAN / Bovespa: LATM33), the leading airline group in Latin America, announced today it intends to offer (the "Offering") Senior Notes (the "Notes").

A portion of the Notes will be used to refinance the existing 9.50% Senior Guaranteed Notes due 2020 of TAM Capital 2 Inc. (the "TAM 2020 Notes"). As part of the refinancing, Citigroup Global Markets Inc. (the "Offeror") has launched a cash tender offer for any and all of the TAM 2020 Notes and related consent solicitation to amend certain provisions in the indenture governing the TAM 2020 Notes. It is intended that the TAM 2020 Notes purchased by the Offeror in the tender offer will be exchanged by the Offeror with LATAM for a portion of the Notes sold in the Offering. LATAM intends to use the net proceeds from the Notes sold in the Offering that are not exchanged for TAM 2020 Notes to redeem any TAM 2020 Notes that are not tendered pursuant to the Tender Offer. Any remaining proceeds will be used for general corporate purposes.

The Notes will be senior unsecured obligations of LATAM. The Offering is subject to customary conditions, and there can be no assurances that the Offering will be consummated.

The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. As a result, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Notes will be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States under Regulation S under the Securities Act.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities. The Offering will be made only by means of the confidential offering memorandum.

The tender offer and the consent solicitation are being made only pursuant to the terms and conditions set forth in an offer to purchase and consent solicitation statement dated [?], 2015 (the "Tender Offer and Consent Solicitation Statement") and the related letter of transmittal and consent (the "Letter of Transmittal" and, together with the Offer and Solicitation Statement, the "Offer Documents"), which have been sent to holders of the TAM 2020 Notes. This news release is not an offer to purchase, a solicitation of an offer to sell or a solicitation of consents with respect to any securities. The tender offer is made only by, and pursuant to the terms of, the Offer Documents. In addition, this news release does not constitute a notice of redemption of the TAM 2020 Notes or an obligation to issue a notice of redemption.