Hyundai Unit Sets $115-Million Offering

FOUNTAIN VALLEY — Hyundai Motor Finance Co. said Thursday that it will move ahead this month with a public offering of $115 million in asset-backed securities.

A spokesman for Hyundai said the company thinks that the debt offering is the first in the United States by any unit of a Korean manufacturer. Hyundai Finance, the in-house dealer and consumer lending arm of Korean auto maker Hyundai Motor Corp., said Salomon Brothers Inc. will be sole underwriter of the offering, set for Monday.

The securities, to be rated later this month by Moody’s and Standard & Poor’s credit rating services, will be backed by Hyundai automobile receivables--effectively, the liens on cars sold to dealers and to the public. The company said proceeds from the sale will be used to finance the sale of Hyundai automobiles in the United States.

Both Hyundai Motor Finance and Hyundai Motor America Inc. are based in Fountain Valley. The latter is the U.S. distributor, marketing and dealership development arm of Hyundai Motor Corp.