MercadoLibre calls 2% notes due 2028; holders may convert notes

By Marisa Wong

Los Angeles, Sept. 19 – MercadoLibre, Inc. announced it will redeem all of its outstanding 2% convertible senior notes due 2028 on Nov. 14, according to a press release.

Currently, $439,075,000 aggregate principal amount is outstanding.

The notes will be redeemed at par plus accrued interest up to but excluding the redemption date.

In lieu of surrendering their notes for redemption, holders of the notes may elect to convert their notes at any time before 5 p.m. ET on Nov. 13.

Each $1,000 principal amount of notes is convertible into 2.2952 shares of MercadoLibre common stock. This conversion rate reflects an increase of 0.0399 additional shares per $1,000 principal amount above the otherwise applicable conversion rate, which applies because the notes have been called for redemption.

The company will settle any conversions solely in shares of common stock, with the exception that any fractional shares that would otherwise be deliverable will be paid out in cash.

To convert their notes, holders must comply with the procedures set forth in the indenture governing the notes, including electronic presentation and surrender of their notes for conversion through the facilities of DTC.

The company said it intends to settle conversions of the notes solely using treasury shares that it has previously purchased in the open market or received upon settlement of various instruments that it purchased to hedge potential dilution from conversion of the notes.

Chief financial officer Martin de los Santos commented in the press release, “Retirement of the remaining notes will save MercadoLibre approximately $44 million in interest expense that would have been payable had the notes remained outstanding to maturity.”

Based in Montevideo, Uruguay, MercadoLibre is a Latin American e-commerce technology and digital financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.