MercadoLibre’s $1.1 Billion Inaugural Registered Notes Offering

Cleary Gottlieb Steen & Hamilton LLP, Marval O’Farrell & Mairal, Veirano Advogados, Claro & Cía, Brigard Urrutia, and Nader, Hayaux & Goebel advised MercadoLibre, while Davis Polk advised the representatives of the underwriters in the offering.

MercadoLibre, Inc. executed its debt offering of $400 million aggregate principal amount of 2.375% sustainability notes due 2026 and $700 million aggregate principal amount of 3.125% senior notes due 2031.

Proceeds from the sustainability notes will be used to finance eligible projects that (i) contribute to environmental objectives such as: clean transportation, land conservation and preservation, energy efficiency, renewable energy, green buildings and pollution prevention and control or (ii) aim to address or mitigate a specific social issue or seek to achieve positive social outcomes especially, but not exclusively, for one or more target populations. The notes are fully and unconditionally guaranteed by several of MercadoLibre’s principal subsidiaries by revenue – namely, MercadoLibre S.R.L., Ibazar.com Atividades de Internet Ltda., eBazar.com.br Ltda., Mercado Envios Servicos de Logistica Ltda., MercadoPago.com Representações Ltda., MercadoLibre Chile Ltda., MercadoLibre, S. de R.L. de C.V., DeRemate.com de México, S. de R.L. de C.V. and MercadoLibre Colombia Ltda.

The proceeds of the issuance of the 3.125% Notes due 2031 is to fund in part the purchase price for the repurchase of $440 million in aggregate principal amount of the Company’s 2.00% Convertible Senior Notes Due 2028 (the “2028 Notes”) entered into on January 6, 2021 and the premium for capped call transactions entered into on January 4, 2021. The purpose of the capped call transactions is to manage the future impact on MercadoLibre of conversions of the outstanding 2028 Notes.

Founded in 1999, MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of the necessary online and technology-based tools that allow businesses and individuals to trade products and services in the region. The company enables commerce through its marketplace platform (including online classifieds for motor vehicles, services and real estate), which allows users to buy and sell in most of Latin America.

Cleary Gottlieb advised MercadoLibre with a capital markets team including partners Nick Grabar (Picture), Francesca Odell, and Duane McLaughlin, associates Benjamin Teran, Synne Chapman, and Natalia Rezai, and international lawyers Belen Pironi and Carla Cardoza Vidal. The convertible note repurchase team included senior attorney David Parish and associates Patrick Courtien and David Taub. The capped call team included partner Michael Dayan and associates Juliette Todd and Eric Finkelberg. Associate Stephanie Fontana advised on sustainability matters, partner Jason Factor, senior attorney David Stewart Fisher, and law clerk Zhiyuan Zuo advised on tax matters, senior attorney Marc Rotter advised on Investment Company Act matters, counsel Chase Kaniecki, senior attorney James Corsiglia, and associates Nathanael Kurcab and Michael Sanders advised on sanctions matters, counsel Mary Alcock and associate Emily Barry advised on ERISA matters, and senior attorney Elizabeth Chang advised on Nasdaq matters.

Marval O’Farrell & Mairal team was led by Partner Juan Diehl, María Inés Brandt, Maria Manuela Lava, Jacqueline Berkenstadt and Luciana Virgile.

Veirano Advogados team was led by partner Alexandre Verri and inlcuded associates Alexandre Turqueto and Adriano Milanesi Sutto.

Claro & Cía team was led by Partner Luisa Núñez.

Brigard Urrutia team was led by Partner Luis Gabriel Morcillo.

Nader, Hayaux & Goebel team included Partners Javier Arreola, Gunter Schwandt and Adalberto Valadez and associates Mario De La Portilla and Ileana García in Mexico City.

The Davis Polk corporate team, advising BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as representatives of the several underwriters, included partner Richard D. Truesdell Jr. and associates Eryn E. Gordon, Yushen Liu and David Giron. Counsel Kiara L. Rankin and associates Liang Zhang and Rebecca A. Rosen provided tax advice.

Involved fees earner: Felipe Calderón Padilla – Brigard & Urrutia; Luis Gabriel Morcillo – Brigard & Urrutia; Luisa Núñez – Claro y Cia; Mary Alcock – Cleary Gottlieb Steen & Hamilton; Emily Barry – Cleary Gottlieb Steen & Hamilton; Carla Cardoza Vidal – Cleary Gottlieb Steen & Hamilton; Elizabeth Chang – Cleary Gottlieb Steen & Hamilton; Synne Chapman – Cleary Gottlieb Steen & Hamilton; James Corsiglia – Cleary Gottlieb Steen & Hamilton; Patrick Courtien – Cleary Gottlieb Steen & Hamilton; Michael Dayan – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Eric Finkelberg – Cleary Gottlieb Steen & Hamilton; Stephanie Fontana – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Chase Kaniecki – Cleary Gottlieb Steen & Hamilton; Nathanael Felix Kurcab – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Francesca Odell – Cleary Gottlieb Steen & Hamilton; David Parish – Cleary Gottlieb Steen & Hamilton; Belen Maria Pironi – Cleary Gottlieb Steen & Hamilton; Natalia Rezai – Cleary Gottlieb Steen & Hamilton; Marc Rotter – Cleary Gottlieb Steen & Hamilton; Michael Sanders – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; David Taub – Cleary Gottlieb Steen & Hamilton; Benjamín Teran – Cleary Gottlieb Steen & Hamilton; Juliette Todd – Cleary Gottlieb Steen & Hamilton; David Giron – Davis Polk & Wardwell; Eryn Gordon – Davis Polk & Wardwell; Yushen Liu – Davis Polk & Wardwell; Kiara Rankin – Davis Polk & Wardwell; Rebecca Rosen – Davis Polk & Wardwell; Richard Truesdell Jr. – Davis Polk & Wardwell; Liang Zhang – Davis Polk & Wardwell; Jacqueline Berkenstadt – Marval, O’Farrell & Mairal; María Inés Brandt – Marval, O’Farrell & Mairal; Juan Diehl Moreno – Marval, O’Farrell & Mairal; Maria Manuela Lava – Marval, O’Farrell & Mairal; Luciana Martina Virgile – Marval, O’Farrell & Mairal; Ileana Aideé García – Nader, Hayaux & Goebel; Javier Arreola Espinosa – Nader, Hayaux & Goebel; Mario de la Portilla – Nader, Hayaux & Goebel; Gunter Schwandt – Nader, Hayaux & Goebel; Adalberto Valadez Hernández – Nader, Hayaux & Goebel; Alexandre Camargo Turqueto – Veirano Advogados; Adriano Sutto – Veirano Advogados; Alexandre Verri – Veirano Advogados;

Law Firms: Brigard & Urrutia; Claro y Cia; Cleary Gottlieb Steen & Hamilton; Davis Polk & Wardwell; Marval, O’Farrell & Mairal; Nader, Hayaux & Goebel; Veirano Advogados;

Clients: Bank of America Securities; BNP Paribas Securities; Citigroup Global Markets Ltd; Goldman Sachs & Co.; J.P. Morgan Securities LLC; MercadoLibre, Inc.;

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Author: Ambrogio Visconti