Notice of Right to Convert

Rhea-AI Summary

MercadoLibre has announced that its 2.00% Convertible Senior Notes due in 2028 have become convertible. This change allows holders of these notes to convert them into common stock until September 30, 2020. The conversion option is triggered by the company's stock price exceeding 130% of the conversion price for at least 20 of the last 30 trading days of Q2 2020, giving investors an opportunity to benefit from the stock’s appreciation.

Positive

• The company’s stock performance enabled the conversion of the notes, indicating strong market interest and investor confidence.

Negative

• The conversion of notes may lead to dilution of existing shareholders' equity.

MercadoLibre, Inc.
2.00% Convertible Senior Notes due 2028
CUSIP [58733RAD4]

BUENOS AIRES, Argentina, July 03, 2020 (GLOBE NEWSWIRE) -- NOTICE IS HEREBY GIVEN, pursuant to Section 14.01(b)(iv) of the Indenture, dated as of August 24, 2018 (the “Indenture”), by and between MercadoLibre, Inc. (the “Company”) and Wilmington Trust, National Association, as trustee, that the above-referenced notes (the “Notes”) have become convertible in accordance with said section, and may be surrendered for conversion at the option of the Holder thereof, through September 30, 2020, as a result of the Last Reported Sale Price of the Company’s Common Stock being more than 130% of the Conversion Price in effect on each applicable Trading Day during at least 20 of the last 30 consecutive Trading Days of the calendar quarter ended June 30, 2020.

Capitalized terms used in this Notice and not otherwise defined herein have the meanings given to them in the Indenture.

MERCADOLIBRE, INC.

Dated: July 1st, 2020

The CUSIP number is included herein solely for the convenience of the registered owners of the Notes. No representation is made as to the correctness or accuracy of the CUSIP number either as appearing on the Notes or on this notice.

MercadoLibre, Inc.

Investor Relations

investor@mercadolibre.com

http://investor.mercadolibre.com

FAQ

What are the terms for converting MercadoLibre's 2.00% Convertible Senior Notes?

Holders can convert their notes until September 30, 2020, triggered by the stock price exceeding 130% of the conversion price for at least 20 of the last 30 trading days of Q2 2020.

What is the impact of the conversion of the 2.00% Convertible Senior Notes on MercadoLibre's stock?

The conversion could lead to dilution of existing shareholders' equity, impacting share value.

When was the notice regarding the convertible notes announced?

The notice was given on July 1, 2020.

How does the conversion price of MercadoLibre's notes work?

The conversion price is based on the stock's performance, specifically if it exceeds 130% of the conversion price for the specified trading days.