Cleary Gottlieb represented the initial purchasers in the transaction.
The reopening of $300 million 5.250% notes due 2031 was issued by Movida Europe S.A., a Luxembourg subsidiary of Movida Participações S.A. (Movida), and guaranteed by Movida and Brazilian subsidiaries Movida Locação de Veículos S.A. and Movida Locação de Veículos Premium Ltda. The transaction priced on September 8, 2021 and closed on September 15, 2021.
Itaú BBA, Morgan Stanley, Citigroup, J.P. Morgan, BTG Pactual, Santander, UBS Investment Bank and XP Inc acted as initial purchasers.
Movida, through its subsidiaries, operates in two segments: car rental services to individuals and companies, as well as fleet management and outsourcing (GFT). Movida intends to use the net proceeds from the sale of the notes for general corporate purposes, including capital expenditures, and to refinance certain existing indebtedness.
The notes are linked to Movida’s ability to achieve, by December 31, 2025, a specified target reduction of Greenhouse Gas Emissions, as confirmed by an independent external verifier, under Movida’s Sustainability-Linked Securities Framework adopted in January 2021. If this target is not met, the coupon rate on the bonds will automatically step up to 5.500% per annum. The notes will be listed on the Singapore Exchange Securities Trading Limited.
The Cleary corporate team included partner Juan Giráldez (Picture), associate Luisa Franciss Galliez, and international lawyer Rosane Carmona, based in Sao Paulo. Partner Jason Factor and associate Drew Schaefer based in New York provided tax advice.
Involved fees earner: Rosane Carmona – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Luisa Franciss Galliez – Cleary Gottlieb Steen & Hamilton; Juan Giráldez – Cleary Gottlieb Steen & Hamilton; Drew Schaefer – Cleary Gottlieb Steen & Hamilton;
Law Firms: Cleary Gottlieb Steen & Hamilton;