MercadoLibre stock falls as company taps debt markets

Shares of MercadoLibre Inc (NASDAQ:MELI) fell 2.8% on Wednesday after Bloomberg reported that the company is making only its third return to international debt markets.

According to Bloomberg, the Latin American e-commerce and fintech heavyweight is selling dollar-denominated notes due in 2036 with an initial spread of about 160 basis points above comparable US Treasuries. The proceeds will be allocated for general corporate purposes.

This would be MercadoLibre's first bond sale since December and only its third cross-border issuance since its debut global offering in 2021. Allen & Company, BofA Securities, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley, and Santander are managing the deal.

The new notes have been assigned ratings of BBB- from Fitch Ratings and S&P Global Ratings and Baa3 from Moody's Ratings, placing them at the lowest investment-grade rung at each agency.

MercadoLibre operates across 18 Latin American countries, offering e-commerce and financial technology services.

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