Arcos Dorados and its subsidiary Arcos Dorados entered into a new $200 million syndicated revolving credit facility (RCF).
The RCF replaces the company’s existing revolving credit facilities, which totaled $75 million and were or will be terminated as part of the transaction. The RCF has a four-year maturity, beginning Sept. 30, 2025, with an optional one-year extension, and an interest rate of SOFR + 210 basis points up to SOFR + 240 basis points.
“This transaction reinforces Arcos Dorados’ commitment to pursuing a solid financial strategy and reflects the continued trust and support of our long-standing banking partners,” Mariano Tannenbaum, executive vice president and chief financial officer of Arcos Dorados, said. “We plan to continue proactively managing our capital structure to ensure sustainable growth while leveraging our investment-grade credit rating, efficient treasury operations and strong balance sheet to support our strategic initiatives and ongoing operations.”
The RCF was arranged by a syndicate of seven banks. JPMorgan Chase Bank acted as sole lead arranger and sole bookrunner; Banco Bilbao Vizcaya Argentaria, Banco Santander (Brazil), Bank of America and BNP Paribas acted as mandated lead arrangers; and Banco de Crédito del Perú and FirstBank Puerto Rico acted as lead managers.
Davis Polk & Wardwell acted as U.S. legal counsel for Arcos Dorados. Milbank acted as U.S. legal counsel for the sole lead arranger and sole bookrunner.
