Nachrichten January 14, 2022

Inaugural Sustainability-Linked Bond Offering and Debt Tender Offers by Globo

Shearman & Sterling represented Globo Comunicação e Participações S.A. in connection with its offering of US$400 million 5.500 percent sustainability-linked notes due 2032 and a debt tender offer in respect of any and all of its outstanding 4.843 percent senior notes due 2025 and 5.125 percent senior notes due 2027. Part of the net proceeds from the issuance of the sustainability-linked notes will be used to finance the purchase of the senior notes in the debt tender offer.

Globo is the largest media group in Brazil and controls the leading broadcast television network and the leading pay-TV programmer in Brazil, with one of the most frequently accessed digital content portfolios in the country, as well as a streaming platform mainly focused on Brazilian users present in Brazil, Canada, the United States and Europe.

This transaction is Globo’s inaugural issuance under its Sustainability-Linked Finance Framework established in November 2021. The Sustainability-Linked Notes include a sustainability performance target for a 15 percent reduction in the absolute tCO2e emissions of Globo and its consolidated subsidiaries for the year ending December 31, 2026, as compared to their emissions for the year ended December 31, 2019. Failure to meet such target will result in a 25 basis point increase in the interest rate payable on the sustainability-linked notes, beginning on July 14, 2027.

In relation to the offering of the Sustainability-Linked Notes, Goldman Sachs & Co. LLC, Itau BBA USA Securities, Inc. and Morgan Stanley & Co. LLC acted as global coordinators and joint bookrunners, BofA Securities, Inc. and Santander Investment Securities Inc. acted as joint bookrunners and Itau BBA USA Securities, Inc. acted as sustainability structuring agent. In relation to the debt tender offer, Goldman Sachs & Co. LLC, Itau BBA USA Securities, Inc. and Morgan Stanley & Co. acted as dealer managers.

The Shearman & Sterling team below included international associate Jerônimo de Sousa (New York-Capital Markets), associates Elliot Domio (New York-Funds) and Stephanie Li (New York-Funds).

The Team