Uruguay’s Arcos Dorados starts tender offers for 2023, 2027 notes

Chicago, April 18 – Arcos Dorados Holdings Inc. started a cash tender offer for its 2023 and 2027 senior notes, according to a press release.

The company is offering to buy any and all of its $201,763,000 outstanding 6 5/8% notes due 2023 (Cusips: 03965UAB6, G0457FAD9) for a total consideration of $1,053.60 per $1,000 notes.

Additionally, Arcos Dorados is offering to buy up to $150 million from its $535,986,000 outstanding 5 7/8% notes due 2027 (Cusips: 03965UAC4, G0457FAC1) for $1,029.38 per $1,000 note.

The total consideration for the 2023 notes is a flat $1,053.60 whether noteholders tender early or late, but the consideration for the 2027 notes includes a $30 early tender consideration that will only be paid to noteholders who tender by the early deadline. Noteholders who tender after the early deadline will only receive $999.38 per note.

In both cases, interest will be paid to the applicable settlement date.

The 2023 notes tender offer expires at 5 p.m. ET on April 22.

The early deadline for the 2027 notes is 5 p.m. ET on April 29.

The capped offer for the 2027 notes ends at 11:59 p.m. ET on May 13.

There are guaranteed delivery procedures.

The offer is subject to the satisfaction of a financing condition. Tendering noteholders should request a unique identifier code from the dealer managers if they wish to subscribe to the company’s new notes. Priority may be given in allocation of the new notes to tendering noteholders.

Tenders in the 2027 note offer may be subject to proration.

The dealer managers for the tender offers are Citigroup Global Markets Inc. (800 558-3745, 212 723-6106), Itau BBA USA Securities Inc. (888 770-4828, 212 710-6749), J.P. Morgan Securities LLC (866 846-2874, 212 834-7279) and Santander Investment Securities Inc. (855 404-3636, 212 940-1442).

Global Bondholder Services Corp. is the information and tender agent (212 430-3774, 855 654-2014, contact@gbsc-usa.com, www.gbsc-usa.com/arcos).

Based in Montevideo, Uruguay, Arcos Dorados is the world’s largest McDonald’s franchisee.

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