Arcos Dorados Prices Private Placement of R$400 Million 10.25% Notes Due 2016
July 08 2011 - 2:05PM
Business Wire
Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the
“Company”), announced today the pricing of R$400 million (US$255
million) of the Company’s 10.25% Brazilian-real denominated senior
unsecured notes (the “notes”). The notes mature on July 13, 2016
and are guaranteed on a senior unsecured basis by certain of Arcos
Dorados’ 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-U.S. persons in
accordance with Regulation S under the Securities Act. The notes
offering is expected to close on July 13, 2011, subject to
customary closing conditions.
The proceeds from the sale of the notes will be used by the
Company to satisfy its capital expenditure program, including to
open and reimage restaurants, and for general corporate purposes.
Arcos Dorados is also analyzing the possibility, subject to market
and other conditions, of unwinding its cross-currency swaps, in
which case the Company may use a portion of the net proceeds from
the offering to pay amounts due there under.
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.
About Arcos Dorados
Arcos Dorados is the world's largest McDonald's franchisee, in
terms of systemwide sales and number of restaurants.
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 there from. 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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