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Arcos Dorados Prices Private Placement of Its 6.625% Senior Notes Due 2023



  Arcos Dorados Prices Private Placement of Its 6.625% Senior Notes Due 2023

Business Wire

BUENOS AIRES, Argentina -- September 24, 2013

Arcos Dorados Holdings Inc. (NYSE:ARCO) (“Arcos Dorados” or the “Company”),
announced today the pricing of US$375,000,000 aggregate principal amount of
6.625% Senior Notes due 2023 to be issued by the Company (the “Notes”). The
Notes will be issued at a price of 100.909%. The Notes mature on September 27,
2023 and will be guaranteed on a senior unsecured basis by certain of the
Company’s subsidiaries. The Notes were offered in a private placement to
qualified institutional buyers in accordance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), and outside the
United States to non-US persons in accordance with Regulation S under the
Securities Act.

The Company also expects to issue an additional US$98,225,000 aggregate
principal amount of Notes (which are expected to be fully fungible with and
trade under the same CUSIPs as the Notes that were priced today) in exchange
for Arcos Dorados B.V.’s outstanding 7.50% Senior Notes due 2019 (the “2019
Existing Notes”) pursuant to the Company’s previously announced exchange offer
(the “Exchange Offer”).

The settlement of the Notes offering (including any Notes issued pursuant to
the Exchange Offer) is expected to take place on September 27, 2013, subject
to customary closing conditions.

The proceeds from the Notes offering will be used by the Company to pay the
principal and premium in connection with the Company’s previously announced
tender offer to purchase any and all of the 2019 Existing Notes, to repay
certain short-term and other indebtedness, to unwind a cross-currency interest
rate swap and for general corporate purposes (including possible capital
expenditures depending on cash availability at year-end).

This press release does not constitute an offer to sell or a solicitation of
an offer to buy these securities, nor will there be any sale of these
securities, in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any state or jurisdiction. The Notes and related guarantees
have not been registered under the Securities Act, or any applicable state
securities laws, and will be offered only to qualified institutional buyers
pursuant to Rule 144A promulgated under the Securities Act and outside the
United States to non-U.S. persons in accordance with Regulation S under the
Securities Act. Unless so registered, the Notes and related guarantees may not
be offered or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and any applicable state
securities laws.

Any offer or sale of Notes in any Member State of the European Economic Area
which has implemented Directive 2003/71/EC (as amended, the “Prospectus
Directive”) must be addressed to “Qualified Investors” (as defined in the
Prospectus Directive).

About Arcos Dorados

Arcos Dorados is the world's largest McDonald's franchisee in terms of
systemwide sales and number of restaurants, operating the largest quick
service restaurant (“QSR”) chain in Latin America and the Caribbean. It has
the exclusive right to own, operate and grant franchises of McDonald’s
restaurants in 20 Latin American and Caribbean countries and territories,
including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao,
Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto
Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay and Venezuela. The
Company operates or franchises 1,971 McDonald’s-branded restaurants with over
90,000 employees serving approximately 4.3 million customers a day, as of June
2013.

Cautionary Statement About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements often are proceeded by words such as “believes,” “expects,” “may,”
“anticipates,” “plans,” “intends,” “assumes,” “will” or similar expressions.
The forward-looking statements contained herein include statements about the
Company’s Notes offering and its intended use of proceeds therefrom. These
expectations may or may not be realized. Some of these expectations may be
based upon assumptions or judgments that prove to be incorrect. In addition,
Arcos Dorados' business and operations involve numerous risks and
uncertainties, many of which are beyond the control of Arcos Dorados, which
could result in Arcos Dorados' expectations not being realized or otherwise
materially affect the financial condition, results of operations and cash
flows of Arcos Dorados. Some of the factors that could cause future results to
materially differ from recent results or those projected in forward-looking
statements are described in Arcos Dorados’ filings with the United States
Securities and Exchange Commission.

The forward-looking statements are made only as of the date hereof, and Arcos
Dorados does not undertake any obligation to (and expressly disclaims any
obligation to) update any forward-looking statements to reflect events or
circumstances after the date such statements were made, or to reflect the
occurrence of unanticipated events. In light of the risks and uncertainties
described above, and the potential for variation of actual results from the
assumptions on which certain of such forward-looking statements are based,
investors should keep in mind that the results, events or developments
disclosed in any forward-looking statement made in this document may not
occur, and that actual results may vary materially from those described
herein, including those described as anticipated, expected, targeted,
projected or otherwise.

Contact:

Investor Relations
Sofia Chellew, +54-11-4711-2515
sofia.chellew@ar.mcd.com
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