Gildemeister Sets Target

Chile’s Automotores Gildemeister (AG) is out with initial price thoughts of 7.25%-area for what is expected to be a $300m 2023 NC5 bond, according to sources following the sale. The Ba2/BB vehicle importer and distributor operating in Chile and Peru wrapped up investor meetings in New York Wednesday and is pricing as soon as today. The deal is expected to be comped against AG’s own 2021 NC5 bonds, trading to yield inside of 7.0% Wednesday. JPMorgan is sole bookrunner. Following the issuance, Moody’s expects AG to pre-pay $70m of short-term debt plus $45m of long-term debt and maintain a cash position of at least $50m, what it considers to be a credit positive move from a liquidity standpoint. The deal should also improve AG’s debt maturity profile and allow the company to continue to execute network expansion in Chile and Peru and develop operations in Brazil, the agency adds. AG last visited the bond market in January 2012, retapping the 8.25% 2021s for $100m, to take the total outstanding issue size to $400m.