MercadoLibre’s $1.85 Billion Equity Offering

Goldman Sachs is acting as sole financial advisor to MercadoLibre on the PayPal and Dragoneer investments, and Cleary Gottlieb is serving as MercadoLibre’s legal advisor. Goldman Sachs, J.P. Morgan and Morgan Stanley are acting as joint bookrunners on the public equity offering.

MercadoLibre, Inc. (NASDAQ: MELI), Latin America’s leading e-commerce technology company, executed its offering of $1 billion of common stock. MercadoLibre granted the underwriters a 30-day option to purchase up to $150 million of additional shares of common stock. In addition, MercadoLibre has entered into an agreement pursuant to which PayPal has committed to make a $750 million strategic investment through the purchase of common stock. In a separate agreement, an affiliate of Dragoneer Investment Group has agreed to purchase $100 million of Series A perpetual convertible preferred stock. The PayPal and Dragoneer investments are contingent upon the closing of the public offering and are expected to close at the same time or shortly after the public offering.

The company intends to use the proceeds to continue expanding its e-commerce platform, to strengthen its logistics infrastructure, and to invest in solutions that further solidify the company’s position as a powerful provider of inclusive end-to-end financial technology and payments solutions.

Cleary Gottlieb Steen & Hamilton advised MercadoLibre with Nicolas Grabar (Picture), Andrea M. Basham, Synne D. Chapman, Carissa Ferrigno and Natalia Rezai.

Latham & Watkins advised Dragoneer Investment Group with a team including Gregory P. Rodgers, Haim Zaltzman, Elena Romanova, Arash Aminian Baghai, Asher Herzog and Giacomo Reali.

Involved fees earner: Andrea Basham – Cleary Gottlieb Steen & Hamilton; Synne Chapman – Cleary Gottlieb Steen & Hamilton; Carissa Ferrigno – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Arash Aminian Baghai – Latham & Watkins; Giacomo Reali – Latham & Watkins; Gregory Rodgers – Latham & Watkins; Elena Romanova – Latham & Watkins; Haim Zaltzman – Latham & Watkins;

Law Firms: Cleary Gottlieb Steen & Hamilton; Latham & Watkins;

Clients: Dragoneer Investment Group; MercadoLibre, Inc.;

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Author: Ambrogio Visconti