New Issue: Argentina's Arcos Dorados sells $450 million 7½% 10-year notes at 99.136 to yield 7 5/8%

By Paul A. Harris

St. Louis, Sept. 24 - Arcos Dorados BV priced a $450 million issue of 7½% 10-year senior notes (Ba2//BBB-) at 99.136 to yield 7 5/8% on Thursday, according to market sources.

The deal was launched late Wednesday at 7 5/8%. That rate is 37.5 bps lower than the initial guidance in the 8% area, which was heard earlier in the week.

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.

Proceeds will be used to repay bank debt and certain short-term debt and for general corporate purposes.

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

Issuer:	Arcos Dorados BV
Face amount:	$450 million
Maturity:	Oct. 1, 2019
Security description:	Senior notes
Active bookrunners:	Morgan Stanley, Bank of America Merrill Lynch
Passive bookrunners:	Citigroup, Banco Itau, Banco Santander, Scotia Capital
Coupon:	7½%
Price:	99.136
Yield:	7 5/8%
Spread:	421 bps
Call features:	Make-whole at Treasuries plus 50 bps until Oct. 1, 2014, then callable at 103.75, 102.50, 101.25 par on and after Oct. 1, 2017
Equity clawback:	35% at 107.50 until Oct. 1, 2012
Change-of-control put:	101%
Trade date:	Sept. 24
Settlement date:	Oct. 1
Ratings:	Moody's: Ba2
	Fitch: BBB-
Distribution:	Rule 144A/Regulation S
Price talk:	Launched at 7 5/8% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.