#Chile #Santiago #Exchange Offers #Gildemeister #AG Chile

Automotores Gildemeister SpA Extends Exchange Offers

In a recent announcement, Automotores Gildemeister SpA, a prominent automotive distributor based in Chile, revealed early results and the extension of the early exchange time for its previously announced exchange offers. These offers pertain to its outstanding 7.50% Junior Secured Notes due in 2027 and 10.00% Subordinated Notes due in 2035, alongside related consent solicitations.

Overview of the Exchange Offers

The exchange offers target all eligible holders of the company’s existing notes, allowing them to exchange their notes for new securities at favorable terms. The initiative aims to enhance the financial flexibility of Automotores Gildemeister, particularly as it positions itself for future growth.

Details of the Offers

1. 7.50% Junior Secured Notes: Eligible holders can exchange these for new 7.50% Senior Secured PIK Toggle Notes due in 2032, alongside cash considerations.
2. 10.00% Subordinated Notes: Similarly, holders of the 10.00% Subordinated Notes due in 2035 can exchange them for new 10.00% Subordinated Secured PIK Toggle Notes due in 2035 and cash.

This exchange offers attractive terms, including interest rates stipulated in the confidential offering memorandum dated November 21, 2025. The differences between the new and existing notes include various amendments to the indentures that will simplify the company’s obligations.

Strategic Background

Gildemeister, founded in 1986, is renowned as the official distributor of Hyundai vehicles in Chile and Peru while also representing various other prestigious automotive brands. By embarking on this exchange, Gildemeister aims to strengthen its balance sheet and provide a more stable platform for future endeavors amidst growing market challenges in the automotive sector.

As part of the exchange offers, the company also initiated concurrent consent solicitations to adopt several proposed amendments to the existing notes' indentures. These amendments include:

• - Eliminating much of the restrictive covenants.
• - Releasing liens on collateral securing the existing junior notes.
• - Allowing more flexibility in managing its note holders and equity structures.

Current Participation and Next Steps

As of December 5, 2025, Gildemeister reported approximately 97.6% of the total principal amount of existing notes has been validly tendered. However, since the minimum participation condition for the offers was not met, Gildemeister has chosen to extend the early exchange time to December 12, 2025.

Conditions for Participation

Eligible holders must respond by the stated deadline to enjoy the early exchange benefits, which include receiving early exchange consideration amounts as detailed in the offering memorandum. Moreover, the completion and execution of these transactions will position Gildemeister to enhance its operational capabilities and financial health in the ever-evolving automotive landscape.

Conclusion

Automotores Gildemeister SpA’s strategic move to extend its exchange offers is indicative of the company’s proactive measures to solicit participation from existing notes holders, thereby paving the way for a restructured financial framework that supports growth initiatives. The automotive industry remains subject to significant fluctuations, and Gildemeister’s ability to navigate this through flexible financing options could position it for success in the coming years.

Gildemeister continues to advocate for investor engagement and encourages all eligible note holders to participate in the exchange process for improved financial outcomes.