La Polar Puts Equity Sale in Motion

Chilean retailer La Polar plans to start during the next three weeks a roadshow for an approximately $220m-equivalent equity capital increase, according to sources familiar with the sale. Details are still unclear, as the issuer is waiting for the official go-ahead from regulators for the transaction, which La Polar aims to conclude by October. The retailer plans to visit Chile, Mexico, Peru, Colombia and Brazil to market the deal, according to remarks from Chairman Cesar Barros cited in local media. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients and is undergoing the increase as part of a $900m restructuring with creditors. Creditors recently granted an extension to October 29 to complete the equity sale. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.