Automotores Gildemeister’s $500 Million Restructuring

Cleary Gottlieb represented Automotores Gildemeister SpA in a tender and exchange offer to restructure the company’s outstanding secured and unsecured debt securities and in the issuance of $509,806,002 aggregate principal amount of new 7.50% Senior Secured Notes due 2025. Veirano Advogados advised Automotores Gildemeister SpA on Brazilian Law; Cariola Díez Pérez-Cotapos SpA, on Chilean Law/Latam coordinator; Rebaza Alcázar & De Las Casas, on Peruvian Law; Hughes & Hughes Abogados, on Uruguayan Law; EY Law S.A., on Costa Rican Law. Dechert LLP acted as counsel of note holders on United States Federal and New York Law; Prieto Abogados, on Chilean Law; Ferrere Abogados, on Uruguayan Law; Hernandez & Cía, on Peruvian Law; Pinheiro Neto Advogados, on Brazilian Law; Batalla, on Costa Rican Law.

Following negotiations with an ad hoc group of holders of existing securities, the tender and exchange offer launched on September 30, 2019 and closed on November 7, 2019, with a participation rate of 98.13%.

The transaction involved the creation of collateral structures for Automotores Gildemeister’s assets in Chile, Peru, Uruguay, Brazil, and Costa Rica to secure the new notes, as well as the issuance of new warrants.

Founded in 1986 in Chile, Automotores Gildemeister is one of the largest vehicle importers and distributors in Chile and Peru, with operations in Uruguay, Costa Rica, and Brazil. Automotores Gildemeister has a network of 266 vehicle dealerships and is a licensed distributor of a number of established global vehicle brands, such as Hyundai, Volvo, Jaguar, Land Rover, Mini, and BMW.

The Cleary team included partner Adam Brenneman (Picture), associate Olivia Espy Huntington, and international lawyer Daniela Urquiza Travi. Senior attorney David Stewart Fisher and associate Alexander Cadmus provided tax advice.

Cariola Díez Pérez-Cotapos SpA advised with a team composed of Francisco Javier Illanes, Javier Cerón, Florencia Grez, Cristóbal Morales, Valentina Barros, Vicente Sáenz de Santa María.

Rebaza Alcázar & De Las Casas team included Ricardo Cárdenas, José Jiménez, Mirko Medic, and Fernando Rodríguez.

Hughes & Hughes Abogados team included Haroldo Espalter, Patricia Villalba, Santiago Di Bello, and Sofía Cairo.

Veirano Advogados team was led by Partner Roberto Rudzit Neto and Associate Ana Carolina Vieira Sarto.

EY Law S.A. advised with Jürgen G. Nanne K. and Hernán Pacheco.

Dechert LLP team included Jeffrey Katz, Howard Kleinman, John Alessi, Allan Brilliant, Stephen Wolpert, Joseph Dell’Aquila, Vicente Valdes, and Dienna Corrado.

Prieto Abogados team included Benjamín Grebe, Juan Andrés Ilaharreborde, Isabel Monge.

Ferrere Abogados team included Carlos Falco and Diego Rodríguez.

Hernandez & Cía team included Jose Goyburu Vassallo, Juan Luis Hernández Gazzo, Julien Labory Alicq.

Pinheiro Neto Advogados team included Victoria Villa Silva Tsubake and Leonardo Baptista Rodrigues Cruz.

Batalla team included Mariano Batalla and Esteban de la Cruz.

In house counsel of Automotores Gildemeister were Elena Yubero and Vicente Grez.

Involved fees earner: Javier Cerón – Cariola, Díez, Pérez-Cotapos & Cía Ltda; Florencia Grez – Cariola, Díez, Pérez-Cotapos & Cía Ltda; Francisco Javier Illanes – Cariola, Díez, Pérez-Cotapos & Cía Ltda; Cristóbal Morales – Cariola, Díez, Pérez-Cotapos & Cía Ltda; Adam Brenneman – Cleary Gottlieb Steen & Hamilton; Alexander Cadmus – Cleary Gottlieb Steen & Hamilton; Olivia Espy Huntington – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Daniela Urquiza Travi – Cleary Gottlieb Steen & Hamilton; Jürgen Nanne – EY Law; Hernán Pacheco – EY Law; Sofía Cairo – Hughes & Hughes Abogados; Santiago Di Bello – Hughes & Hughes Abogados; Haroldo Espalter – Hughes & Hughes Abogados; Patricia Villalba – Hughes & Hughes Abogados; Ricardo Cárdenas – Rebaza Alcazar & De Las Casas Abogados Financieros; José Jiménez Chocano – Rebaza Alcazar & De Las Casas Abogados Financieros; Mirko Medic – Rebaza Alcazar & De Las Casas Abogados Financieros; Fernando Rodríguez – Rebaza Alcazar & De Las Casas Abogados Financieros; Roberto Rudzit Neto – Veirano Advogados; Ana Carolina Vieira Sarto – Veirano Advogados;

Law Firms: Cariola, Díez, Pérez-Cotapos & Cía Ltda; Cleary Gottlieb Steen & Hamilton; EY Law; Hughes & Hughes Abogados; Rebaza Alcazar & De Las Casas Abogados Financieros; Veirano Advogados;

Clients: Automotores Gildemeister SpA;

Author: Ambrogio Visconti