Automotores Gildemeister SpA Finalizes Exchange Offers for Outstanding Junior Secured Notes

Automotores Gildemeister SpA Finalizes Exchange Offers

Automotores Gildemeister SpA, a recognized automotive distributor in Chile, has officially reported the completion of its previously announced exchange offers for its outstanding 7.50% Junior Secured Notes due 2027 and 10.00% Subordinated Notes due 2035. The offers were communicated to Eligible Holders and included the issuance of new notes, enhancing the company's financial flexibility and ensuring stability in its operations.

Exchange Offers Overview

The exchange offers, which commenced earlier this month, aimed to facilitate the conversion of existing notes into new securities with adjusted terms. Specifically, holders of the Junior Secured Notes could exchange them for new 7.50% Senior Secured PIK Toggle Notes set to mature in 2032, along with cash considerations. Similarly, the Subordinated Notes could be exchanged for new 10.00% Subordinated Secured PIK Toggle Notes due in 2035. This strategic move is anticipated to bolster the company’s capital structure and improve liquidity.

Final Results and Participation

As of December 18, 2025, Automotores Gildemeister reported significant engagement from noteholders, with approximately $237 million worth of New 2032 Notes and about $105 million of New 2035 Notes issued in exchange for validly tendered existing securities. This early settlement showcases the successful reception of the offers by the market. Furthermore, a continued acceptance of the offers was noted leading up to the expiration time on December 22, bringing the total of existing notes exchanged to over $306 million.

Consent Solicitations and Amendments

Concurrently with the exchange offers, the company sought consents from existing noteholders regarding proposed amendments to the indentures governing the securities. These amendments included the elimination of certain restrictive covenants and provisions that had previously tethered the company’s operational flexibility. The consent solicitations were essential in streamlining the management of its securities and freeing the path for potential future financing.

Financial Implications and Future Prospects

The completion of these exchange offers is expected to have a beneficial impact on Automotores Gildemeister’s prospects. By swapping existing notes for more favorable terms, the company is positioned to address financial obligations more effectively while pursuing growth strategies in the competitive automotive sector of Latin America. This move is also perceived as a proactive approach in a rapidly evolving economic environment that demands agility and responsiveness.

About Automotores Gildemeister

Founded in 1986 and headquartered in Santiago, Chile, Automotores Gildemeister is a leader in the automotive distribution industry. Best known for its role as the official distributor of Hyundai in Chile and Peru, the company also handles a diverse portfolio that includes brands like Volvo, Land Rover, and Jaguar. The firm employs over 1,000 people and operates across multiple countries, emphasizing a comprehensive mobility ecosystem, including vehicle sales, financing, and after-sales services.

As Automotores Gildemeister continues to innovate and adapt within the automotive market, it remains committed to enhancing customer satisfaction and expanding its footprint in Latin America through strategic initiatives such as these exchange offers. The market's response to the recent announcements reflects confidence in the company’s ongoing strategy and operational effectiveness.

Disclaimer

This article is intended for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The exchange offers were made to qualified institutional buyers and not intended for general distribution.