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Argentina’s MercadoLibre obtains $400 million three-year revolver
By Rebecca Melvin
Concord, N.H., April 1 – MercadoLibre Inc. entered into a $400 million revolving credit agreement on Thursday that must be repaid by March 31, 2025, according to an 8-K filing with the Securities and Exchange Commission.
The initial guarantors are company subsidiaries, MercadoLibre SRL, Ebazar.com.br Ltda, Ibazar.com Atividades de Internet Ltda., Mercado Envios Serviços de Logística Ltda., Mercado Pago Instituicao de Pagamento Ltda., Deremate.com de Mexico S. de RL de CV, MP Agregador, S. de RL de CV, Mercado Libre Chile Ltda. and Mercadolibre Colombia Ltda.
The interest rate on borrowings will be SOFR plus 125 basis points.
Under the agreement, the company will be subject to customary affirmative and negative covenants for credit facilities of this type, including covenants that limit the ability of the company and its restricted subsidiaries to, among other things, change the business of the company or the guarantors, merge or dispose of assets, grant liens or enter into any sale or lease-back transactions. The credit agreement also requires the company to maintain a minimum of cash, cash equivalents and short-term investments of $600 million.
It provides for customary events of default, including, without limitation, nonpayment, material misrepresentation, breach of covenants, insolvency, bankruptcy, certain judgments, change of control and cross-events of default on material indebtedness, which are defined in the credit agreement.
Citibank NA is the administrative agent. BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc,. and JPMorgan Chase Bank NA are the joint lead arrangers and bookrunners.
MercadoLibre is a Buenos Aires-based e-commerce and payment company.
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