Montevideo, Uruguay, Feb 03 — Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, announced on January 30, 2026, a proposed financing transaction designed to increase the efficiency of its capital structure. The combination of borrowing by its Brazilian subsidiary and the proposed tender offer for up to a corresponding amount of its 6.125% Sustainability-Linked Senior Notes due 2029 (the “2029 Notes”) is expected to reduce the Company’s total cost of financing without significantly impacting the average maturity and foreign currency exposure of its long-term debt or its net financial leverage.
In December 2025, Arcos Dorados’ Brazilian subsidiary secured $150 million in new bank debt, due in 2029. The Company and its Brazilian subsidiary entered into certain derivative instruments in order to manage the interest rate and maintain the foreign currency exposure of its long-term debt. As a result of these transactions, the new bank debt has an estimated US dollar cost of 2.53%.
The proceeds of the new bank debt will be used to fund a tender offer of up to $150 million of the Company’s 2029 Notes, which was announced on January 30, 2026. Importantly, the Company believes it is on track to meet the Sustainability Performance Targets applicable to the 2029 Notes.
In the event of a full acceptance of the tender offer, the Company expects the result of the transactions will lower the average US dollar cost of its long-term debt by approximately 55 basis points.
“We seek to maintain an efficient capital structure to support Arcos Dorados’ goal to capture the maximum potential of the McDonald’s brand in the twenty-one countries and territories where we operate. Today’s announcement demonstrates our ability to take advantage of market opportunities to capture additional efficiencies while further aligning our capital structure with our long-term strategy,” said Mariano Tannenbaum, Arcos Dorados’ Executive Vice President and Chief Financial Officer.