The Company’s Brazilian subsidiary borrowed $150 million in December 2025
The proceeds will fund a Tender Offer of up to $150 million of the Company’s Sustainability-Linked Senior Notes due 2029
MONTEVIDEO, Uruguay–(BUSINESS WIRE)–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.
For more details on the tender offer, please refer to the 6-K furnished to the U.S. Securities and Exchange Commission on January 30, 2026.
About Arcos Dorados
Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and sub-franchise McDonald’s restaurants in 21 Latin American and Caribbean countries and territories. Arcos Dorados and its sub-franchisees together operate more than 2,500 restaurants and have more than 100,000 employees (as of 12/31/2025). The Company is committed to the development of the communities in which it operates by providing young people their first formal job opportunities and utilizing its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: https://ir.arcosdorados.com/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s business prospects and cost of capital. These statements are subject to the general risks inherent in Arcos Dorados’ business. 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. Additional information relating to the uncertainties affecting Arcos Dorados’ business is contained in its filings with the SEC. 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.
Contacts
Investor Relations Contact
Dan Schleiniger
VP of Investor Relations
Arcos Dorados
[email protected]
Media Contact
David Grinberg
VP of Corporate Communications
Arcos Dorados
[email protected]
