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Anhanguera Educacional Participacoes has named COO Roberto Valerio as CEO, it says. He replaces Ricardo Leonel Scavazza, who moves to a board position ahead of the recently announced share-swap merger with Kroton Educacional. Anhanguera and Kroton announced the BRL5.0bn ($2.49bn) deal last week, which will leave Kroton with 57.48% of the new company and Anhanguera 42.52%. The transaction is pending antitrust approvals. Scavazza, who has been with the company’s management since 2003, takes charge of the committee monitoring the transition, and will take a spot on the combined company’s board. Kroton CEO Rodrigo Galindo will be CEO of the combined entity, and Anhanguera founder Gabriel Mario Rodrigues will serve as chairman.

Fitch has downgraded Automotores Gildemeister (AG) to BB minus from BB, it says. The agency points to an increase in gross adjusted financial leverage and related cash flow considerations for the Chilean vehicle distributor. “AG’s credit ratings continue to reflect its stable market position, solid brand recognition, and the company’s adequate liquidity. The ratings are constrained by AG’s business cyclicality, high leverage, negative [free cash flow], and limited product diversification,” says Fitch. The outlook is stable. In January, Automotores Gildemeister sold a new $300m bond, pricing a 2023 NC5 with a 6.75% coupon to yield 7.25%.

Companhia de Concessoes Rodoviarias (CCR) has completed the placement of BRL520m ($260m) in domestic bonds, according to Anbima. The 2016 debenture pays 105% of the DI. The road operator is raising funds to repay short-term debt. Banco do Brasil arranged the transaction, done under the rule 476 restricted format.

Direcional Engenharia has finalized the sale of BRL200m ($100m) in Brazil’s local bond market, according to Anbima. The 2017 debenture pays DI+1.0%, in line with expectations. The homebuilder is raising funds for general purposes. Itau, Bradesco and Banco do Brasil managed the placement, done under the rule 476 restricted format.

Unimed Rio has raised BRL100m ($50m) from the sale of domestic bonds, according to Anbima. The holdco for healthcare assets has issued a 2017 debenture paying DI+2.47% and amortizing twice annually beginning 2014. Banco do Brasil arranged the placement, done under the rule 476 restricted format.

Brazil’s Aralco has sold a $250m cross-border bond after reviving the issue at more attractive pricing. The B/B sugar and ethanol producer priced the 2020 NC3 at 99.386 with a 10.125% coupon to yield 10.25%, in line with 10.25%-area guidance. The transaction was heard getting just above the offering size in demand, and the deal was trading around reoffer late Tuesday, according to investors. The level was widened from the 9.5%-area the issuer sought during a tough week in mid-April. Aralco also adjusted the call structure, to NC3 from NC4. “There is real value at this level,” says a participating EM portfolio manager. The pricing compares to Brazilian peers Tonon (B/B), with a 2020 trading at 8.40%-8.50% Tuesday and GVO (B3/B/B), with a 2022 trading at 10.90%-11.00%. Proceeds will be used to repay short-term and secured debt, capital expenditures and accelerate sugarcane planting. The issuer’s net leverage hit 7.3x at the end of 2012, though Fitch notes it could drop to below 5.0x after the 2013-2014 harvest. The agency also identifies Aralco as a beneficiary of Brazilian government incentives including tax breaks announced last week for the sugar sector, given its 66% focus on ethanol production. Credit Suisse, HSBC, Itau, Banco Pine and Banco Votorantim managed the sale. The notes are issued through Aralco Finance and unconditionally guaranteed by Aralco and other operating units.

Spain’s Telefonica has agreed to sell 40% of its assets in El Salvador, Guatemala, Nicaragua and Panama to Guatemalan family-owned conglomerate Corporacion Multi Inversiones for $500m, it says, to raise funds to pay off debt. The process will involve creating a holdco for the assets in these countries, and includes the payment of an additional amount of up to $72m, determined by the future performance of the assets. Analysts were positive on a multiple seen at 6.5x Ebitda, especially considering that Telefonica is selling a minority stake. This move is part of a larger strategy to raise funds from its most valuable assets without ceding control anywhere, say analysts, noting a minority stake in Colombia or divestments of assets in Europe might be next. It could also choose to IPO in countries where it is unlikely to find a minority partner, according to one industry analyst. Telefonica is looking to decrease its debt from EUR51bn ($67bn) to a targeted EUR47bn at the end of this year. “They clearly are operating out of the most economically challenged home market in Europe,” another industry analyst says. “Their debt after buying Vivo is far too high,” he adds. In 2010, Telefonica raised its offer three times to acquire the 50% it did not already own in the Brazilcel JV from Portugal Telecom, paying EUR7.5bn for the stake. With it came 60% of Brazil’s Vivo Participacoes. Officials at each company were unable to provide details on advisors.

Grupo Gayosso has decided to wait on a new cross-border bond, according people following the deal. The Mexican funeral services provider had been seeking 8.75%-area yield for a $150m 2020 bond, and could elect to try to price again in the future. JPMorgan is managing. Gayosso is rated B/B+, and owned by private equity firm Advent International, which acquired it in 2007 from private investors in a $317m leveraged buyout.

Consorcio Transmantaro has raised $450m in its first visit to the international bond market, getting about $1.5bn in orders and offering buyers another new play on Peruvian growth expectations. The Baa3/BBB minus electricity transmission operator priced the 2023 at 99.002 with a 4.375% coupon to yield 4.500%, at the tight end of 4.625%-area guidance that followed 4.75%-area talk. The final level was seen as tight by many on the buyside, though some found it offered a pickup to 40%-owner Empresa de Energia de Bogota (EEB) (Baa3/BBB minus), whose 2021 was spotted trading to yield around 3.7% Tuesday. Comps in Peru included Baa2/BBB Transportadora de Gas del Peru (TGP) and Baa3/BBB minus Gas Natural de Lima y Callao (Calidda). “It’s a little tight, but still came wide to some Peruvian peers,” says one buysider looking at the deal and seeing a pickup to Calidda’s 2023 (Baa3/BBB minus) yielding 4.30%-4.40%. Investors were drawn by 80% of revenues being guaranteed by the government in what is seen as a stable and growing sector. This was weighed against high leverage – 9.7x as of year-end 2012, and expected by Fitch to drop to 7.7x by the end of this year. Transmantaro is using the proceeds to repay debt. Credit Suisse and Deutsche Bank managed the sale. The issuer operates transmission assets in Peru under eight concessions, which expire during 2031-2045. Revenues come from granting access to its lines for electric generation and distribution companies, and are not dependent on volumes transported. It is owned 40% by EEB and 60% by fellow Colombian ISA.