Arcos Dorados’ tender for 6 5/8% notes oversubscribed at early deadline

By Wendy Van Sickle

Columbus, Ohio, June 16 – Arcos Dorados Holdings Inc.’s cash tender offer for up to $80 million of its $473,767,000 of outstanding 6 5/8% senior notes due 2023 was oversubscribed by the early tender deadline, according to a press release.

The company had set an $80 million tender cap and received tenders for $98,765,000 of the notes by the early deadline, 5 p.m. ET on June 14.

The company accepted the maximum tender amount of $80 million of notes on a prorated basis.

The company paid a total consideration of $1,010 for each $1,000 principal amount for the early tendered and accepted notes. It also paid accrued interest.

Because the offer was oversubscribed by the early deadline, no notes tendered afterward will be accepted for repurchase unless the issuer elects to increase the tender cap, which it said it reserves the right to do.

In that case, holders who tendered notes after the early deadline would receive the total consideration less a $30 early tender payment.

The offer expires at 11:59 ET on June 28.

BofA Merrill Lynch (646 855-8988 or 888 292-0070) and Santander Investment Securities Inc. (212 940-1442 or 855 404-3636) are acting as dealer managers.

D. F. King & Co., Inc. (212 269-5550, 877 864-5060 or arcosdorados@dfking.com) is the information and tender agent.

Arcos Dorados is a Buenos Aires-based franchisee of McDonald’s restaurants.

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