Arcos Dorados Announces Proposed Offering of Senior Notes
Arcos Dorados Holdings Inc. (NYSE: ARCO) announced that its subsidiary Arcos Dorados B.V. plans to offer senior unsecured notes in a private placement. The notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.
The notes will be guaranteed on a senior unsecured basis by the Company and certain subsidiaries. The proceeds will be used to fund a tender offer to purchase all outstanding 5.875% senior notes due 2027 and for general corporate purposes.
The notes and related guarantees have not been registered under the Securities Act and will only be offered to qualified institutional buyers and non-U.S. persons unless registered.
Arcos Dorados Holdings Inc. (NYSE: ARCO) ha annunciato che la sua controllata Arcos Dorados B.V. prevede di offrire note senior non garantite in un collocamento privato. Le note saranno offerte a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi secondo la Regolamentazione S del Securities Act.
Le note saranno garantite in modo senior e non garantito dalla Società e da alcune controllate. I proventi saranno utilizzati per finanziare un'offerta pubblica di acquisto per l'acquisto di tutte le note senior 5,875% in circolazione con scadenza nel 2027 e per scopi aziendali generali.
Le note e le garanzie correlate non sono state registrate ai sensi del Securities Act e saranno offerte solo a compratori istituzionali qualificati e a persone non statunitensi, a meno che non siano registrate.
Arcos Dorados Holdings Inc. (NYSE: ARCO) anunció que su subsidiaria Arcos Dorados B.V. planea ofrecer notas senior no garantizadas en una colocación privada. Las notas se ofrecerán a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses según la Regulación S de la Ley de Valores.
Las notas estarán garantizadas de manera senior y no garantizada por la Compañía y ciertas subsidiarias. Los ingresos se utilizarán para financiar una oferta pública de adquisición para comprar todas las notas senior pendientes al 5,875% con vencimiento en 2027 y para fines corporativos generales.
Las notas y las garantías relacionadas no han sido registradas bajo la Ley de Valores y solo se ofrecerán a compradores institucionales calificados y a personas no estadounidenses, a menos que sean registradas.
아르코스 도라도스 홀딩스 Inc. (NYSE: ARCO)는 자회사 아르코스 도라도스 B.V.가 사모로 비보장 시니어 노트를 제공할 계획이라고 발표했습니다. 이 노트는 규칙 144A에 따라 자격이 있는 기관 투자자에게, 그리고 증권법의 규정 S에 따라 비미국인에게 제공될 것입니다.
노트는 회사와 일부 자회사에 의해 비보장 시니어 기반으로 보장될 것입니다. 수익금은 2027년 만기 5.875% 시니어 노트를 모두 구매하기 위한 공개 매수에 사용되며, 일반적인 기업 목적에도 사용될 것입니다.
노트와 관련된 보증은 증권법에 따라 등록되지 않았으며, 등록되지 않는 한 자격을 갖춘 기관 투자자와 비미국인에게만 제공될 것입니다.
Arcos Dorados Holdings Inc. (NYSE: ARCO) a annoncé que sa filiale Arcos Dorados B.V. prévoit d'offrir des obligations senior non garanties dans le cadre d'un placement privé. Les obligations seront proposées à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des personnes non américaines selon la réglementation S de la loi sur les valeurs mobilières.
Les obligations seront garanties par la société et certaines de ses filiales sur une base non garantie. Les produits seront utilisés pour financer une offre publique d'achat visant à acquérir toutes les obligations senior actuellement en circulation à 5,875% arrivant à échéance en 2027 et à des fins d'entreprise générales.
Les obligations et les garanties associées n'ont pas été enregistrées en vertu de la loi sur les valeurs mobilières et ne seront offertes qu'à des acheteurs institutionnels qualifiés et à des personnes non américaines, à moins qu'elles ne soient enregistrées.
Arcos Dorados Holdings Inc. (NYSE: ARCO) hat bekannt gegeben, dass ihre Tochtergesellschaft Arcos Dorados B.V. plant, ungesicherte Senior-Anleihen in einer privaten Platzierung anzubieten. Die Anleihen werden an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen gemäß der Regulierung S des Wertpapiergesetzes angeboten.
Die Anleihen werden von der Gesellschaft und bestimmten Tochtergesellschaften auf ungesicherter Senior-Basis garantiert. Die Erlöse werden verwendet, um ein öffentliches Übernahmeangebot zum Kauf aller ausstehenden 5,875% Senior-Anleihen mit Fälligkeit 2027 zu finanzieren und für allgemeine Unternehmenszwecke.
Die Anleihen und die damit verbundenen Garantien sind nicht unter dem Wertpapiergesetz registriert und werden nur an qualifizierte institutionelle Käufer und nicht-US-Personen angeboten, es sei denn, sie sind registriert.
- Potential refinancing of existing debt structure
- Senior notes are backed by company and subsidiary guarantees
- New debt issuance could increase company's leverage
- to qualified institutional buyers and non-U.S. persons due to unregistered status
Insights
This debt refinancing initiative by Arcos Dorados represents a strategic financial maneuver in the current interest rate environment. The company's move to replace its existing
The private placement approach targeting qualified institutional buyers through Rule 144A indicates a sophisticated debt strategy that could offer more flexibility and potentially better pricing compared to a public offering. The inclusion of international investors via Regulation S broadens the potential investor base, which could lead to improved pricing dynamics.
The structure of the guarantee package, involving both the parent company and key subsidiaries, provides robust security for investors while maintaining operational flexibility. The 'general corporate purposes' component of the use of proceeds provides financial agility, though investors should monitor the final allocation of these funds.
The timing of this debt restructuring is particularly strategic given the market's expectations of potential rate cuts in 2025. For a company operating in emerging markets where currency fluctuations can impact debt servicing costs, optimizing the debt structure is crucial. The tender offer for existing notes suggests proactive liability management rather than distressed refinancing.
The multi-jurisdictional approach to the offering, combining both U.S. (144A) and international (Reg S) placements, maximizes market access and could lead to more competitive pricing. The senior unsecured nature of the notes, combined with subsidiary guarantees, creates a balanced security structure that should appeal to institutional investors while maintaining operational flexibility for Arcos Dorados.
Think of this like upgrading a mortgage - it's not about taking on more debt, but rather optimizing the terms and cost of existing obligations. This could potentially free up cash flow for operational investments in their restaurant network across Latin America.
The timing of pricing and terms of the Notes are subject to market conditions and other factors. The proceeds from the Notes offering will be used by the Issuer: (i) to fund a tender offer conducted by the Company to purchase for cash any and all of its outstanding
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
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About Arcos Dorados
Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating in
Cautionary Statement on 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.
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Investor Relations Contact
Dan Schleiniger
VP of Investor Relations
Arcos Dorados
daniel.schleiniger@mcd.com.uy
Media Contact
David Grinberg
VP of Corporate Communications
Arcos Dorados
david.grinberg@mcd.com.uy
Source: Arcos Dorados Holdings Inc.
FAQ
What is the purpose of ARCO's new senior notes offering?
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Which existing ARCO notes are being targeted by the tender offer?
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