SCHEDULE: Sixth Street Reduces LATAM Airlines Stake to 21.1%

Sixth Street Partners, through Lauca Investments, sold over 11.5 billion shares of LATAM Airlines Group S.A. back to the issuer as part of a share repurchase program.

Summary

• Lauca Investments, LLC, an entity controlled by Sixth Street Partners Management Company, L.P., sold 11,552,776,680 shares of LATAM Airlines Group S.A. Common Stock.
• The sale occurred on July 31, 2025, at a price of CLP$19.00 per share, equivalent to approximately US$0.020415400 per share.
• The transaction was executed pursuant to LATAM Airlines Group S.A.'s share repurchase program, which was approved by the Issuer's shareholders.
• Following this transaction, Sixth Street Partners Management Company, L.P. and Alan Waxman beneficially own an aggregate of 121,387,693,315 shares of Common Stock.
• This aggregate beneficial ownership represents 21.1% of the Issuer's Common Stock outstanding.
• The calculation of the ownership percentage is based on 574,219,895,457 shares of Common Stock outstanding as of the closing of the July 31, 2025 share repurchase.
• This outstanding share count reflects previous repurchases of 9,671,006,041 shares (May 1, 2025) and 20,550,887,837 shares (July 31, 2025) from an initial 604,441,789,335 shares reported on June 16, 2025.

Sentiment

Score: 6

Explanation: The filing reports a factual transaction where a major shareholder sold shares back to the issuer as part of a company-wide repurchase program. While the repurchase itself is generally positive for remaining shareholders, the filing does not contain new operational or financial performance data to significantly alter the overall sentiment beyond a neutral to slightly positive outlook for the issuer's capital management.

Positives

• The Issuer's share repurchase program, of which this transaction is a part, generally reduces the number of outstanding shares, which can lead to an increase in earnings per share for remaining shareholders.
• The repurchase demonstrates the Issuer's commitment to capital management and potentially returning value to shareholders.

Negatives

• Sixth Street Partners, a significant shareholder, has reduced its stake in LATAM Airlines Group S.A., which could be interpreted as a partial divestment, although it is part of a company-wide repurchase program.

Future Outlook

The reporting persons have no present plans, proposals, or intentions for further transactions that would result in or relate to the items described in subparagraphs (a) through (j) of Item 4 of Schedule 13D, although their plans are subject to change at any time.

Management Comments

• Joshua Peck, Authorized Signatory of the GP of Sixth Street Partners Management Company, L.P., certified the information set forth in the statement as true, complete, and correct.

Industry Context

This filing details a specific capital management action by LATAM Airlines Group S.A. (an airline) and a change in beneficial ownership by a major investment firm. Share repurchases are a common corporate finance strategy across various industries, including the capital-intensive airline sector, to optimize capital structure and potentially enhance shareholder value.

Related Party Transactions

• Lauca Investments, LLC, an entity controlled by Sixth Street Partners (a significant shareholder of LATAM Airlines Group S.A.), sold shares back to the Issuer as part of its share repurchase program.

Stakeholder Impact

• Shareholders: The share repurchase program reduces the total number of outstanding shares, which can potentially increase earnings per share for remaining shareholders.
• Sixth Street Partners: Their beneficial ownership stake in LATAM Airlines Group S.A. has been reduced from their previous holdings.

Next Steps

• The reporting persons' future plans regarding their investment in LATAM Airlines Group S.A. are subject to change at any time, despite no present plans for further transactions.

Key Dates

Recommendation

The filing details a significant shareholder's sale of shares back to the issuer as part of a pre-approved share repurchase program. While the repurchase itself is a positive capital management action for the issuer, reducing outstanding shares, the filing does not provide new fundamental insights into the company's operational performance or future prospects to warrant a change in investment recommendation. It primarily reports a change in beneficial ownership.

Keywords

LATAM Airlines, Sixth Street Partners, Share Repurchase, Schedule 13D, Beneficial Ownership, Airline, Common Stock, ADS