Arcos Dorados Holdings Inc. Announces Early Settlement of Cash Tender Offer for Any and All of Its 10.25% Brazilian Real Denominated Senior Notes Due 2016

MONTEVIDEO, Uruguay--()--Arcos Dorados Holdings Inc. (the “Company”) today announced that it has accepted for purchase R$421,765,000 of its outstanding 10.25% Brazilian Real-Denominated Senior Notes payable in U.S. dollars due 2016 (the “Notes”), representing 67.29% of the Notes, that were validly tendered at or prior to April 21, 2016 at 5:00 p.m., New York City time (the “Early Tender Time”) in response to its previously announced cash tender offer (the “Offer”) for any and all of the Notes, pursuant to the terms of the offer to purchase dated April 8, 2016 (the “Offer to Purchase”). Capitalized terms used but not defined herein have the meanings set forth in the Offer to Purchase.

The Company paid the Total Consideration (R$1,000 per R$1,000 principal amount of Notes, which includes an Early Tender Payment of R$30 per R$1,000 principal amount of Notes) plus accrued and unpaid interest to, but not including, April 26, 2016. The Total Consideration was paid in U.S. dollars, calculated by converting the Brazilian real into U.S. dollars at the Brazilian real/U.S. dollar commercial rate, as reported by the Banco Central do Brasil on April 20, 2016 (the “Early Rate Calculation Date”) and as further explained in the Offer to Purchase. The Settlement Rate, as determined on the Early Rate Calculation Date in accordance with the Offer to Purchase, is 3.5503 Brazilian reais per one U.S. Dollar. The Total Consideration (excluding accrued and unpaid interest) paid by the Company per R$1,000 principal amount of Notes expressed in U.S. dollars based on such Settlement Rate was $281.67. The total amount paid by the Company for all of the Notes validly tendered and not validly withdrawn prior to the Early Tender Time (excluding accrued and unpaid interest) expressed in U.S. dollars was $118,797,003.10.

The Offer is scheduled to expire at 11:59 P.M., New York City time, on May 5, 2016, unless extended by the Company in its sole discretion. Withdrawal rights with respect to the Offer have expired as scheduled and have not been reinstated.

The Offer is subject to the Company having sufficient funds available in U.S. dollars required to purchase all of the Notes sought pursuant to the Offer (including all accrued and unpaid interest) on the Final Settlement Date, and certain other customary conditions as described in the Offer to Purchase. The Offer is not conditioned upon any minimum number of Notes being tendered.

The Company is not soliciting consents to modify any of the covenants in the indenture governing the Notes. Any Notes that remain outstanding after the termination of the Offer will continue to be the Company’s obligations. Holders of those outstanding Notes will continue to have all the rights associated with the Notes and the indenture governing the Notes.

Citigroup Global Markets Inc. and Itau BBA USA Securities, Inc. are acting as dealer managers (the “Dealer Managers”) in connection with the Offer. Questions regarding the Offer may be directed to Citigroup Global Markets Inc. at (212) 723-6106 (collect) or (800) 558-3745 (U.S. toll-free) and Itau BBA USA Securities, Inc. at (212) 710-6749 (collect) or (888) 770-4828 (U.S. toll-free). Requests for documentation may be directed to D. F. King & Co., Inc., the information and tender agent for the Offer, at (212) 269-5550 (for banks and brokers), (866) 796-6867 (U.S. toll-free), email at or as otherwise provided on the back cover of the Offer to Purchase.

This press release is not an offer to purchase or a solicitation of an offer to purchase with respect to any Notes or any other securities. The Offer is being made solely pursuant to the terms of the Offer to Purchase. The Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of the Company, the Dealer Managers or D.F. King & Co., Inc. makes any recommendation as to whether holders should tender or refrain from tendering their Notes. Holders must make their own decision as to whether to tender Notes and, if so, the principal amount of the Notes to tender.

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 over 2,100 McDonald’s-branded restaurants with over 90,000 employees and is recognized as one of the best companies to work for in Latin America. Arcos Dorados is traded on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website:

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 Offer. 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.


Investor Relations
Arcos Dorados Holdings Inc.
Daniel Schleiniger, +54 11 4711 2265
Sr. Director of Corporate Communications & IR

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