Movida Europe gives early results, ups tender cap for 5¼% notes

By William Gullotti

Buffalo, N.Y., Aug. 15 – Movida Europe SA gave the early tender results of and increased the cap for its offer to purchase outstanding 5¼% sustainability-linked notes due 2031 (Cusips: 62459LAA7, L65266AA3), according to a press release on Tuesday.

$463,952,000 of the notes remain outstanding, which are guaranteed by Movida Participacoes SA and Movida Locacao de Veiculos SA. Movida Europe is a finance subsidiary of Movida Participacoes.

As previously reported, the company is offering a total consideration of $860 per $1,000 note, inclusive of a $30 early tender premium that will not be paid to noteholders who tender after the early deadline. In addition, accrued interest will be paid.

As of the early tender deadline at 5 p.m. ET on Aug. 14, which was also the withdrawal deadline, the company received tenders totaling $172,144,000.

Early settlement is expected on Aug. 22.

Movida subsequently upped the maximum tender amount to $300 million from $175 million after accepting all of the early tendered notes for purchase without proration.

The company also changed the consideration to be paid to participating noteholders who tender after the early deadline, increasing the total consideration to be paid to $840 from $830 per $1,000 note. Accrued interest will still be paid.

The offer is still scheduled to expire at 5 p.m. ET on Aug. 29, with settlement expected to be two days after.

Notes tendered after the early deadline may be subject to proration.

As previously reported, the company will use cash on hand to fund the tender.

The dealer managers for the offer are Banco Bradesco BBI SA (+55 11 2169-4528), Banco BTG Pactual SA – Cayman Branch (212 293-4600, ol-dcm@btgpacutal.com), Itau BBA USA Securities, Inc. (212 710-6749), J.P. Morgan Securities LLC (866 846-2874, 212 834-7279), Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057, +44 20 7677 5040, +852 2239 1484, debt_advisory@morganstanley.com), Santander US Capital Markets LLC (855 404-3636, 212 940-1442), UBS Securities LLC (203 979-4454) and XP Investments US LLC (646 664-0505).

D.F. King & Co., Inc. is the information and tender agent for the offer (800 628-8532, 212 269-5550, movida@dfking.com).

The Sao Paulo, Brazil-based company is one of the largest rental car companies in Brazil.

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