Argentina's Arcos Dorados to sell $450 million 10-year notes at 7 5/8%

By Paul A. Harris

St. Louis, Sept. 23 - Arcos Dorados BV launched a $450 million offering of 10-year senior notes (Ba2//BBB-) at 7 5/8% on Wednesday, according to an informed source.

The size of the deal will not grow.

The interest rate at which the deal was launched is 37.5 bps lower than the initial guidance in the 8% area, which was heard earlier in the week.

The Rule 144A and Regulation S deal is expected to price Thursday morning.

Morgan Stanley and Bank of America Merrill Lynch are active bookrunners for the offering. Citigroup, Banco Itau, Banco Santander and Scotia Capital are passive bookrunners.

The notes come with five years of call protection.

The company, which owns the license to operate McDonald's restaurants throughout the region, operates out of Buenos Aires.

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