Ferreyros Picks Banks

Peru’s Ferreyros has awarded a mandate for an international bond transaction to Bank of America Merrill Lynch and JPMorgan, CFO Patricia Gastelumendi tells LatinFinance. The exact timing and details have not yet been determined. The heavy machinery distributor said in May that it was initially considering $100m-$200m in 10-year bonds, in what would be its debut in the international market. The Lima-based distributor for Caterpillar, Atlas, Copco and other brands has been targeting an issue by its holding company backed by guarantees from subsidiaries. Ferreyros had been waiting until after a corporate reorganization was completed in July, splitting its operations into automotive and machine units, both under a single holdco. The new Ferreycorp contains Ferreyros SA and ten additional subsidiaries in a move that would promote autonomy for each subsidiary and target product and service developments independently. Proceeds from the bond issue would be used to extend its debt maturity profile. In February, Ferreyros raised PES170m ($63m) in equity. The company reported consolidated sales of $791m in the first half of 2012, up 24%, or $636m from the same period in 2011.