Mercado Libre Raises $1 Billion Through Successful Note Issuance

By Philip Seaworth • Thursday, September 10 16:05 • Permanent Link

Mercado Libre raised $1 billion through the successful issuance of 2036 senior unsecured notes, a 10-year deal that the company said drew demand from more than 100 institutional investors.

The notes carry a 5.850% coupon and were priced at the same spread as Mercado Libre’s prior 7-year issuance, despite the longer maturity. The company said that comparison underscores investor confidence in its execution and cash generation.

The new securities are senior unsecured notes, SEC registered, and were issued with ratings of BBB from S&P, Baa3 from Moody’s and BBB from Fitch. Mercado Libre said the proceeds will be used for general corporate purposes and to strengthen liquidity.

The transaction was led by BofA Securities, Citigroup, Goldman Sachs, J.P. Morgan and Morgan Stanley as global coordinators and lead book-running managers, with Allen & Company and Santander as joint book-running managers. As a result of these announcements, the company's shares have moved 1.58% on the market, and are now trading at a price of $1906.01. For the full picture, make sure to review MERCADOLIBRE INC's 8-K report.

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