Arcos Dorados $600 million senior notes offering and cash tender offer

Davis Polk advised Arcos Dorados Holdings Inc. in connection with the offering by its subsidiary Arcos Dorados B.V. of $600 million aggregate principal amount of its 6.375% senior notes due 2032. The notes were sold in an offering exempt from registration pursuant to Rule 144A and Regulation S and are guaranteed by Arcos Dorados and certain of its subsidiaries.

Davis Polk also advised Arcos Dorados in connection with its concurrent cash tender offer for any and all of its outstanding 5.875% senior notes due 2027. The concurrent cash tender offer was funded with the proceeds from the notes offering.

Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating 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. It has more than 2,400 restaurants, operated or franchised by the company or by its sub-franchisees, that together employ more than 100,000 people.

The Davis Polk corporate team included partner Maurice Blanco and associate Agustin N. Lopez Roudales. Counsel Liang Zhang and associate Jeff Metzger provided tax advice. Counsel Sarah E. Kim and associate Rosina Curren provided 1940 Act advice. Members of the Davis Polk team are based in the New York office.