Automotores Set for Bond

Automotores Gildemeister has given 8.375%-8.500% yield guidance for its new 2021 NC5 bond, according to investors. The distributor of Hyundai and other automotive brands in Chile, Peru and Uruguay finished investor meetings Monday, and is expected to price a $250m-$300m bond as soon as today. The guidance is in line with earlier whispers of low to mid 8%s. Finding direct comps for the BB/B1 bond is difficult, investors say, with a few noting the poor aftermarket performance of BB Chilean transport company Inversiones Alsacia, trading in the 96-97 area. Proceeds from the issuance would mainly be used to refinance existing debt and improve liquidity. In addition to importation and distribution, AG is in the retail market through 174 owned or leased dealers throughout Chile and Peru, according to Fitch. JPMorgan is managing the sale.