MercadoLibre Announced the Redemption of a Series of Bonds: How Does It Affect Investors?

The marketplace giant born in Argentina but with global reach announced an exchange of all its convertible bonds due in 2028

MercadoLibre Announced the Redemption of a Series of Bonds: How Does It Affect Investors?
September 20, 2023 | 06:00 AM

Buenos Aires — The Argentine unicorn MercadoLibre (MELI) has informed investors that on November 14, 2023, it will redeem all of its 2% senior convertible bonds due in 2028 currently outstanding. The nominal value (VN) of these bonds is currently $439.075 million.

Holders of these negotiable obligations can choose to convert them at any time before November 13, 2023. Each $1,000 of VN is convertible into 2.2952 common shares of MercadoLibre.

Martin de los Santos, the company’s CFO, highlighted that the redemption will save MercadoLibre approximately $44 million in interest.

MercadoLibre to Capitalize on Tax-Break by Selling More Imported Products in Brazil

According to the company’s statement to the U.S. securities market, the conversion ratio reflects an increase of 0.0399 additional shares for every $1,000 principal amount of each bond, above the applicable conversion rate.


However, bondholders can choose to exchange them until noon on November 13, 2023.

A great year for those who invested in MercadoLibre

MercadoLibre’s stock has had a very positive performance in 2023, driven by financial results that left investors more than satisfied and an increase in the price of tech stocks. Between December 31, 2022, and September 18, 2023, MercadoLibre’s shares rose by 63%.

However, there is still room for this stock to reach its 2021 highs when, during the peak of post-pandemic liquidity, each MercadoLibre share reached $1,984, which is 43% higher than the current levels of $1,383.


While Argentina is the birthplace of this company, the unicorn founded by Marcos Galperin’s primary markets are Brazil in the first place and Mexico in the second.

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