Arcos Dorados Cuts Debt Costs With $150 Million Bank Loan and Note Buyback

Reuters
02/02
Arcos Dorados Cuts Debt Costs With $150 Million Bank Loan and Note Buyback

Arcos Dorados Holdings Inc., the largest McDonald's franchisee in the world and Latin America's biggest restaurant chain, announced a new debt transaction aimed at increasing the efficiency of its capital structure. The company’s Brazilian subsidiary recently secured $150 million in bank debt due in 2029, with an estimated U.S. dollar cost of 2.53% after entering into derivative instruments to manage interest rate and currency exposure. Proceeds from this new debt will fund a tender offer for up to $150 million of Arcos Dorados’ 6.125% Sustainability-Linked Senior Notes due 2029. If fully accepted, the transaction is expected to reduce the company’s average U.S. dollar cost of long-term debt by approximately 55 basis points, without significantly affecting debt maturity, currency exposure, or net financial leverage.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Arcos Dorados Holdings Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260202873192) on February 02, 2026, and is solely responsible for the information contained therein.

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